


o 



- ♦ * 















-'-,■- - -, 



y. 



^~. 









,0- 



J^-t ' 






^■4 



/ 






IIPE or ROBERT MORRIS. 



Entered awordlng lo act of Congress, in the year 1834 bv 
Mt:tS.Z'f' '" "- Clerk's Offic-e of the D-LltStn^ 



PREFACE. 



Young and middle aged men, of considerable 
general information, sometimes have occasion, when 
the name of Robert Morris is mentioned, to in- 
quire who he was. This ought not so to be. With 
the military history of Washington, of Gates, Greene, 
La Fayette, and others, they may consider them- 
selves sufficiently acquainted. They may know 
something of Adams, Franklin, Jefferson and oth- 
ers, whose names have been conspicuous in the 
civil history of the United States, but, unfortunately 
for the fame of Morris, at the time of his death, his 
setting sun was clouded by pecuniary misfortune. 
The memory of his name appears to be already 
passing out of the recollection of Americans. But 
it cannot be forgotten, Ramsey, the historian of 
South Carolina, and the biographer of Washington 
has given him no more than a just eulogium. 

"When future ages," says that distinguished 
writer, " celebrate the names of Washington and 
Franklin, they will add that of Morris. The silent 
operations of his system of finance, and his personal 

1* 



^* PREFACE. 



credit, though less visible to the public eye, were 
in the confused state of American affairs at the' 
commencement of the year 1781, no less essential 
to the success of the revolution than the splendid 
military achievements of the one, or the successful 
negociations of the other." 

A shoit narrative is offered to the public, that it 
may cost but little money to buy it, and little time to 
read it. A few extracts from his speeches, on a 
subject of general interest, especially at this time 
are added, that the public may see the intellectual 
portrait of the man himself. From matters of his- 
tory, impartially given, it may be hoped, even the- 
political partisan will not turn away with indiffer- 

pnPA 



ence. 



Let the young merchant learn from the biogra- 
phy of Morris, the value of a character for industry 
and integrity. 

Let the politician learn not to undervalue the tal- 
ents or the services of those who buy and sell the 
productions of the earth. It is a much more honor- 
able occupation than that of trafficking in offices, 
and consciences. 

Let those to whose custody and guardianship the 
public treasures may be committed, learn to emulate 
the ability and integrity of the first superintendent 
of finance. By this means they will gain a reputa- 
tion far more valuable than all the property which, 
may be committed to their charge. 



^^ 






LIFE OF ROBERT MORRIS. 



It has sometimes been thought to have been 
■the intention of providence in bestowing upon 
the citizens of the United States the civil privi- 
leges which we so highly prize, to give the 
world an example of the advantages of a just 
government, emanating from the people, and 
directed by their will. At least we have had 
an opportunity to do this, and if we fail the 
fault will be our own. 

For this purpose the people themselves were 
prepared, under the dominion of a foreign pow- 
er, by suffering the evils which in all future time 
were to be avoided. When the people were 
prepared, the yoke of subjugation was to be 
broken, that they might take a rank among the 
nations of the earth. Our fathers were aroused 



8 LIFE OF ROBERT MORRIS. 

to resist the claim of uncontrolled and unlimited 
power. 

But in vain, without a miracle, would the sin- 
ewy arms of our fathers have been raised in 
resistance to that oppression which threatened 
to crush them to the dust, and in vain would 
even the prayers of the sons of the pilgrims 
have ascended to Heaven, if a Washington had 
not been found, prepared to lead the forlorn 
hope of freedom to victory ; and in the end to 
content himself with beholding the prosperity 
of his country. 

Not less indispensible was the assistance of 
that band of patriots, his coadjutors in the 
great work, whose arduous labors were as free- 
ly and incessantly employed in the field, in the 
councils of the nation, or in the courts of for- 
eign powers. Almost all who ever engaged in 
the work, seemed to have been expressly fitted 
for the stations they were called to fill ; and they 
filled them with integrity and honor. There 
was indeed a traitor once among them, but he 
went out from them because he was not of them. 



LIFE OF ROBERT MORRIS. 9 

If their names go down to posterity with less 
renown than that of Washington, tliey will still 
be honored. Many of them deserve to stand 
with him in the front rank among the benefac- 
tors of their country. 

There was one amoncr the sio-ners of the dec- 
laration of independence whose services in the 
cause of his country, in her hour of peril, were 
scarcely less important than those of Washing- 
ton. Many of our young men may not remem- 
ber his name ; it will probably occupy much 
less space in history, and thrill with less inte- 
rest on the public ear than that of him we call 
the father of his country. The simple reason 
is, his station was less conspicuous in the pub- 
lic eye. 

The commander of an army occupies a mucl 
more prominent point of observation than an- 
other who may have been the prime agent in 
affording the means of collecting, feeding and 
clothing the men who compose it. Yet without 
the assistance of the latter the commander 
might be powerless, and weak as another man. 



10 



LIFE OF ROBERT MORRIS. 



^•^ 



If our country, in the war of the revolution, 
was as much indebted to any other man as she 
was to her Washington, that man was Robert 
Morris of Philadelphia. 

If it be an honor to a country to have been 
the birth-place of such a man, that honor be- 
longs to the county of Lancashire in Eno-land. 
His father was a merchant of Liverpool, and the 
birth-place of the son was in the vicinity. If 
it be a greater honor to have matured and 
fixed the lineaments of character which dis- 
tinguish a man of superior mind, of integrity 
equal in purity to the finest gold, and of patriot- 
ism devoting all to the benefit of an adopted 
country, that honor belongs to the city of Phil- 
adelphia. 

r In 1747, a boy 13 years of age, crossed the 
Atlantic from Liverpool, whom Providence de- 
signed to be, thirty years afterwards, one of the 
most efficient supporters of American Indepen- 
dence. His father had preceded him and estab- 
lished himself at Oxford on the Eastern shore 
of the Chesapeake bay. 



LIFE OF ROBERT MORRIS. 11 

After his arrival in this country, the son was 
put under the care of a schoolmaster named 
Anan. At the close of his attendance his fa- 
ther expressed some dissatisfaction at the small 
progress he had made ; to which he promptly 
replied that he had learned all his master could 
teach him. His father soon after placed him in 
the counting-room of Mr. Charles Willing, then 
a merchant in extensive business in Philadel- 
phia. 

At the age of fifteen he was left an orphan 
by the death of his father, occasioned by his ^ 
being struck by the wadding of a gun which 
was fired to do him honor. , 

Little is now known of the character of the 
young clerk during the time of his apprentice- 
ship except what may be inferred from its sub- 
sequent development in public life. There is 
however enough to mark its consistency with 
that of his riper years. We have one instance 
of decision. It is related that on one occasion, 
private information was brought him, from some 
of the correspondents of his principal, of an ad- 



12 LIFE OP ROBERT MORRIS. 

vance in the price of flour in Europe. Mr. 
Willing was absent, but Mr. Morris, conceiv- 
ing himself authorized by the confidence placed 
in him, and by the circumstances of the case^ 
immediately purchased all the flour he could 
find in the market, on Mr. Willing's account. 
When he was complained of by his neighbors 
for raising the price of flour, Mr. Willino- to 
justify him, disclosed the circumstances, and 
requested them to make the case their own and ' 
judge accordingly. 

Mr. Willing, in his last illness sent for Mr. 
Morris to give him his parting advice. 

''Robert," said the dying man, ''continue 
always to act as you have done." This was all 
the advice he thought it necessary to give, and 
afl he could say to recommend his young friend 
to the confidence of others. 

It is stated that in 1754, though by the date 
of his birth he was but 20 years of age, he ac- 
cepted the invitation of Mr. Thomas Willing, 
the son of his former master, to become the 
active partner in the new firm of Willing & 



LIFE OF ROBERT MORRIS. 13 

Morris. This firm continued for the almost un- 
precedented length of time of thirty-nine years, 
being dissolved no earlier than 1793. 

He was married on the 2nd of March 1769, 
to Miss Mary, sister of the present Reverend and 
venerable bishop White. She w^as a lady of ex- 
emplary virtue, to whom he was much attached. 
She survived him many years. 

Previous to the commencement of the strug- 
gle of the then colonies, first for the common 
privileges of British subjects, and afterwards 
for independence, the house of Willing &l Mor- 
ris were extensively and successfully engaged 
in commercial pursuits. It was during this 
period that Mr. Morris, by his close application 
and his extensive commercial dealings laid the 
foundation of his future public usefulness. 

His commercial experience and his knowl- 
edge of business enabled him to give sound ad- 
vice on questions of vital importance to the in- 
terests of his country, where theoretical opinions 
would have been not merely useless but danger- 
ous. His personal credit, was in some critical 

2 



14 LIFE OF ROBERT MORRIS. 

emergencies, the only apparent financial support 
of the tottering fabric of his country's freedom. 
On the immediate prospect that the struggle 
between the colonies and the crown would be a 
violent and bloody one, many Americans, who 
afterwards evinced sufficient patriotism, were 
undecided. It was not so with Mr. Morris. 
He had before him the certain prospect that 
war would deprive him of the opportunity of 
prosecuting his accustomed business success- 
fully, and oblige him either to abandon commer- 
cial pursuits altogether, or seek out new, more 
hazardous, and even dangerous channels of en- 
terprize. It would not have been a matter of 
wonder, if, in such circumstances, he had fa- 
vored the country of his birth in preference to 
that of his adoption. The state of the public 
mind in Philadelphia, was indicated by the cir- 
cumstance that at the time of the reception of 
the stamp act, only three members of the Phil- 
adelphia bar were found who thought it expedi- 
ent to encounter the consequences of a refusal 
to comply with its requisitions. 



LIFE OP ROBERT MORRIS. 15 

On the 23d of April 1775, an association met 
on the occasion of an accustomed annual festi- 
val. During their festivities the news was re- 
ceived that four days before, the British troops 
had commenced the work of shedding Ameri- 
can blood in the vicinity of Boston. The bat- 
tle of Lexington had been fought. 

The tables of festivity were immediately de- 
serted. The citizens saw before them the alter- 
native of a contest, fierce, violent, bloody, vin- 
dictive, and of uncertain issue, or unqualified 
submission. For the former they were unpre- 
pared. Mr. Morris, the President of the associ- 
ation, and Judge Peters, with a very few oth- 
ers, remained to consider what course was to 
be adopted. The last hope of reconciliation, 
like the expiring flame of a feeble lamp, had 
disappeared. Then and there Mr. Morris 
avowed his unalterable determination, to sup- 
port the cause of his adopted country, with all 
his strentgh and influence. 

During the subsequent uncertain and eventful 
struggle, his talents were put in requisition, and 



16 LIFE OF ROBERT MORRIS, 

were often employed in the public councils, his 
personal credit was almost constantly pledged 
to a great extent, and his labors on various com- 
mittees were almost unceasing. As superin- 
tendent of Finance his exertions were so im- 
portant as to appear to have been almost indis- 
pensible, to the successful termination of the 
contest. 

Previous to the war, his business gave him an 
-extensive intercourse with England, of which 
he availed himself for the advantage of his 
country as well as for his own benefit. All the 
important information thus obtained, and which 
it might have been unsafe to publish more 
extensively, he was in the habit of communi- 
catinor to a few select friends whom he was ac- 
customed to meet for the purpose in the insur- 
ance room of the Merchants Coffee-house, By 
this means it became known, and produced an 
important effect on the community at large. 

After the commencement of the war, the direct 
intercourse between him and his former corres- 
pondents was interrupted. But much impor- 



LIFE OF ROBERT MORRIS. 17 

tant information still reached him throufjh the 
medium of friends on the continent. The free 
expression of his sentiments, and his tone of 
confidence in the success of the American 
cause did much to arouse the luke-warm, fix 
the determination of the wavering, and confirm 
the resolutions of those who had already es- 
poused the cause of their country. Just such 
a man as Mr. Morris, was wanted in the coun- 
cils of the nation; such a man was prepared for 
the station, and on the 3rd of November 1775, 
was chosen to represent the colony of Penn- 
sylvania in Congress. Soon after, he was made 
chairman of a committee which had been pre- 
viously raised for the purpose of contracting for 
the supply of arms and ammunition. The mo- 
ney which the records of Congress show to have 
been granted to him to pay for such articles, 
proves that he did not neglect the duties of this 
appointment. 

On the 11th of December, 1775, he was ap- 
pointed a member of a committee to devise 

ways and means to furnish a naval armament 

2* 



IS LIFE OF ROBERT MORRIS. 

for the use of the colonies. This committee 
recommended the building of five ships of 22, 
five of 28, and three of 24 guns, and a commit- 
tee, of which Mr. Morris was one, was chosen 
to carry the plan into execution. Of the doings 
of this committee, we are not fully informed. , 

One resolution of Congress directs a guard 
to -be placed over the ships and stores of the 
United States at or on the wharves of Messrs. 
Willing &/ Morris, from which it is inferred that 
the firm employed their capital in part in fur- 
nishing the naval force of the United States. 

This committee were authorized to appoint 
naval officers, and were directed to give in- 
structions to the commander of the fleet, touch- 
ing the operations of the ships under his com- 
mand, and appear to have had the general super- 
intendence of marine affairs till the establish- 
ment of a board of admiralty in December, 1779, 
when the ardous duties of this committee were 
transferred to that board. 

Of the services of Mr. Morris in particular 
as a member of this committee, we have no 



LIFE OP ROBERT MORRIS. 19 

means of obtaininor full information. But from 
his subsequent appointment in 1781, as agent 
of marine, to supercede the board of admiralty, 
the duties of that board being added to those of 
his other appointment as superintendent of Fi- 
nance, we may consider ourselves authorized to 
infer, that as a member of the marine committee, 
as in every other situation, he vt^as active and 
useful. As oneproof of this, it is stated that on 
the day before Congress adjourned from Phila- 
delphia to Baltimore in 1776, Mr. Morris, be- 
ing still confident of ultimate success, notvi^ith- 
standing the gloomy prospects of the country, 
borrowed $10,000 for their use. 

It appears from the journals of Congress 
that the naval committee on the 19th of Sep- 
tember, 1776, presented an account of 134,331, 

27-90 dollars for building eight armed vessels? 
Such appears to have been the commencement 

of a national establishment of a navy. It has 
since borne the American flag to the remotest 
parts of the globe. If our rulers and our diplo- 
matists shall perform their duties with careful 



20 LIFE OF ROBERT MORRIS. 

attention to the honor and good faith of the 
nation, we trust it will see that the flag of the 
union is respected, in all parts of the earth, as 
loncf as an American mariner shall wish to look 
at the stars. 

Mr. Morris was present, and an actor in the 
ceremony of laying the corner-stone of the tem- 
ple of Liberty, on the fourth of July A. D. 1776. 
We are not informed precisely what part he 
took in the proceedings which resulted in the 
declaration of independence, but we know that 
this measure was in perfect accordance with his 
decision of character, and with his ardent attach- 
ment to the cause of his country. We know 
also, that though that band of patriots who then 
and there pledged their lives, their for- 
tunes, AND THEIR SACRED HONOR, to maintain 
the liberty and Independence of the United 
States, every one of them, most nobly redeemed 
the pledge, there was not one among them who 
had the good fortune and the honor of contribut- 
ing so much, either of their property or their 
labors for that purpose, as Robert Morris. 



LIFE OP ROBERT MORRIS. 21 

In the debates on the subject of commerce 
in 1776, Mr. Morris took what we may fairly 
presume to have been no unimportant part. 

On the 15th of April he was appointed to nego- 
tiate bills of exchange to the amount of 3,000,£, 
for the supply of the troops employed in the 
operations in Canada. This appointment will 
appear in its true light when it is recollected 
that its particular object was to give the coun- 
try the advantage of his personal credit as a 
merchant, in order to sustain the credit of 
the bills he might negotiate to others on pub- 
lic account. This circumstance will explain 
the resolution of Congress to indemnify him 
for any losses he might sustain in the perform- 
ance of the business entrusted to his care. 

On the 20th of July he was re-elected to 
Congress. The most gloomy period during the 
whole of the revolutionary war was in the fall of 
1776, while Washington was retreating through 
New Jersey followed by the British army, then 
on their way to Philadelphia. Many of the 
hearty friends of the American cause began 



22 LIFE OF ROBERT MORRIS. 

to lose their confidence ; and in such cases, it 
is well known, the loss of confidence is the loss 
of strength. A dissolution of Congress, which 
had been feared, was prevented by their ad- 
journment to Baltimore, leaving Mr. Morris, 
Mr. Clymer and Mr. Walton, a committee to 
transact any necessary business for the Union. 

Philadelphia was to be re-animated, and if pos- 
sible preserved from falling into the hands of 
the enemy. Mr. Morris removed his family, 
but remained himself with a friend. 

At this time he received a letter from Gen. 
Washington, in which it was stated that while 
the enemy were immediately informed of all his 
movements, he was compelled, for want of specie, 
to remain in complete ignorance of their de- 
signs ; and that a certain sum in hard money, 
was absolutely necessary to enable him to obtain 
such intelligence of the movements and precise 
situation of the enemy on the opposite shore, as 
would enable him to act offensively. This letter, 
sent by express, found Mr. Morris without the 
means of affording the requisite supply, and was 



^s 



LIFE OF ROBERT MORRIS. 23 

received at a time when the consternation, and 
general flight of the citizens, and the removal of 
their most valuable effects rendered a compli- 
ance with the request it contained not only dif- 
ficult, but almost hopeless. He afterward often 
adverted to the depression of mind which he 
then experienced, and to the means by which he 
was enabled to relieve Gen. Washington from 
this cause of embarrassment. From the time of 
receiving the letter till evening, he revolved 
gloomily in his mind, the possibility of his being 
able to realize the expectations which had been 
formed from his patriotism and influence. At 
his usual hour of retiring from his counting roc ' 
he was proceeding mournfully home, when I:: 
met a gentleman of the society of friend's, wilL 
whom he was intimate. He enquired of Mr. 
Morris the news, which was th .n a matter of im- 
portance. Mr. Morris replied, " The most im- 
portant news is that I am required to procure 
five-hundred pounds in specie, and you must let 
me have the money.'' The friendly but cautious 
Q-uaker hesitated — " Your security" continued 



24 LIFE OF ROBERT MORRIS. 

Mr. Morris, is to be my note and my honor. 
*' Robert, thou shalt have it," replied his friend. 
The requisite sum was immediately transmitted 
to General Washington and enabled him to j 
procure the information which, with his skill i 
and the courage and confidence of his troops, 
sained the battle of Trenton. The head of 
Morris was not crowned with the laurels of 
the victory, but he had the grateful recollec- 
tion, that he had contributed to the salvation 
of his country. 

On the 10th of March, he was a third time 
elected to Congress. On the 28th of November, 
he was appointed with Mr. Gerry and Mr. Jones, 
tQ^ concert with Gen. Washington, the most 
practic'ible means for a winter campaign. 

On the 5th of July, 1777, he was appointed 
a member of a br^^nmittee of commerce to suc- 
ceed to the secret coitvrnittee. One part of the 
duties of this committee, well as those of the 
secret committee which preceded them, ap- 
pears to have been to make shipments of mer- 
chandize on public account to the West Indies 



LIFE OF ROBERT MORRIS. 25 



and Other places for the purpose of procuring 
in return, such supplies of specie and military 
stores as could not be obtained at home. 

The commercial house of which Mr. Morris 
was a partner, had been employed in this busi- 
ness under the directions of the secret commit- 
tee and probably continued it under the new 
arrangement. 

On the 27th of August 1778, he was appoint- 
ed on the standing committee of finance. 

His commercial credit was always very high, 
and this credit he devoted to the public service 
whenever necessity required. The Hon. Rich- 
ard Peters testifies that he frequently procured 
pecuniary and other supplies, when from the 
known state of the public treasury, they could 
not have been procured by government. 

On one occasion, Mr. Peters, who was on a 
committee for procuring supplies for the army, 
received a letter from Gen. Washington giving 
a most alarming account of the state of the 
military stores, and enjoining immediate exer- 
tions to procure a supply. 



26 LIFE OF ROBERT MORRIS. 

There were no musket cartridges but those 
in the boxes of the soldiers, and they were wet. 
The lead was exhausted. There was none 
known to be in the city. 

In the evening, he attended an entertainment 
given by Don Mirailles, the Spanish minister ; 
and endeavored to disguise his anxiety, as it 
was necessary to do at that period, in order to 
inspire confidence, and thereby as much as pos- 
sible insure success. Mr. Morris however per- 
ceived that all was not right, and in a familiar 
manner observed, 

" I see some clouds passing over that sunny 
countenance you assume — what is the matter?" 

After some hesitation the general's letter was 
shown. After a short delay during which Mr. 
Peters says Morris played with his anxiety, but 
which was probably employed in the considera- 
tion of the pecuniary bearing of the subject, he 
called Mr. Peters aside and told him the Holkar 
privateer, a ship in which he was interested, 
had just arrived at his wharf with ninety tons 
of lead. " You shall have my half," said he, 



LIFE OF ROBERT MORRIS. 27 

" and, there are the owners of the other half," 
pointing to gentlemen in the room. 

" Yes," replied Peters, " but I am already 
under heavy personal engagements as guaranty 
for the department to these and other gentle- 
men." "Well," said Mr. Morris, "they will 
take your assumption with my guaranty." The 
lead was immediately secured, more than a 
hundred people were set to work during the 
night, and before morning a supply of cartridges 
was prepared and sent off to the army. 

The firm of Willing, Morris & Co. were 
once suspected of mingling their private trans- 
actions with the public business committed to 
his care, with a view to their own benefit. A 
report of such charges against Mr. Morris, was 
brought to the notice of Congress by Mr. Lau- 
rens. Mr. Morris requested a committee of 
investigation, to examine the whole affair. 

It appeared that the name of the firm had 
been used, by an arrangement with the secret 
committee, in some purchases made on public 
account, to prevent the increase of price which 



28 LIFE OF ROBERT MORRIS. 

generally took place when it was known that 
contracts were makincr for the union. 

On the report of the facts by the committee 
of investigation, Congress resolved that in the 
execution of the powers committed to him by 
the secret committee he had acted with fidelity 
and integrity, and an honorable zeal for the 
welfare of his country. His vindication was 
complete. Mr. Laurens himself, having discov- 
ered a clue to explain the transactions, which 
at first appeared doubtful, voluntarily came for- 
ward to give his testimony in favor of his vin- 
dication. 

In the year 1780, the reverses in the south 
had produced a general depression, and the 
wants of the army were such as to threaten its 
dissolution. The credit of the continental pa- 
per money had failed. The treasury of Con- 
gress was empty. In these circumstances Mr. 
Morris projected the plan of a bank, for the 
purpose of supplying the immediate wants of 
the army on the credit of individuals, trusting 
to the resources of the country for their final 



LIFE OF ROBERT MORRIS. 29 

reimbursement. Mr. Morris headed a subscrip- 
tion list, the amount of which was to be paid 
in gold and silver if it should become necessary 
to sustain the credit of the bank, with the sum 
of $10,000. He was followed by ninety-five 
others, raising the amount of the subscription 
to the sum of 315,000^, Pennsylvania currency. 
Mr. Thomas Willing, Mr. Morris' partner, was 
appointed President, and Tench Francis, Cash- 
ier. Directors were appointed, who were au- 
thorized to borrow money on the credit of the 
bank, and to grant special notes bearing interest 
at six per cent. No emoluments whatever were 
to be derived from the institution. Congress, 
by a resolution, expressed their high satisfaction 
in the assistance thus afforded the country in a 
time of great necessity, and pledged the faith 
of the United States effectually to indemnify 
the members of this voluntary and patriotic 
association. It does not appear that this com- 
pany was incorporated, but it effected the ob- 
ject of supplying the army with three millions 

of rations, and we must add, with regret that 

3* 



30 LIFE OF ROBERT MORRIS. 

it should at that time, have been thought neces- 
sary, with three hundred, hogsheads of rum. 

This association continued till the next year, 
when the more regular plan of the Bank of 
North America was adopted. 

On the 20th of February 1781, Robert Morris 
was unanimously elected to the office, then 
newly created, of superintendent of Finance. 
The duties of that office were analagous to 
those of the present Secretary of the Treasury. 
A part of them were to examine into the state 
of the public debt, expenditures and revenue, 
to digest and report plans for improving and 
regulating the finances, and for establishing 
order and economy in the expenditure of the 
public money, to direct the execution of all 
plans adopted by Congress respecting revenue 
and expenditure, to superintend and control all 
persons concerned in procuring supplies for the 
public service, to obtain accounts of all specific 
supplies furnished by the several states, and in 
his official capacity to prosecute in behalf of 
those States for all delinquencies respecting the 



LIFE OF ROBERT MORRIS. 31 

public revenue and expenditure, and to report 
to Congress the officers necessary for conduct- 
ing the various branches of this department of 
the government. 

The amount of labor devolving on the head 
of a department of so much importance, in a 
time of war, no man would estimate lightly. 

But this circumstance was of but trifling im- 
portance, compared with those arising from the 
situation of the finances of the country. Ac- 
cording to a representation of Gen. Washing- 
ton, there was but a scanty pittance of provis- 
ions for the army scattered through the several 
states; the arsenals were poorly provided with 
military stores, and the workmen all leaving 
them ; the various articles of field equipage the 
quarter-master general was, as a last resort, en- 
deavoring to procure from the states ; there was 
no regular system of transportation, nor any 
funds in the hands of the quarter-master to 
enable him to establish one; and a great part 
of that business was done by military impress- 
ment ; daily and hourly oppressing the people, 



32 LIFE OF ROBERT MORRIS. 

souring their tempers, and alienating their affec- 
tions. The credit of the continental paper 
money had entirely ceased ; a debt of more 
than two millions, of such a nature that it 
could neither be avoided nor delayed, without 
utterly ruining the credit of Congress in Europe, 
had absorbed the supplies from Holland, on 
which some dependence had been placed ; 
public and private distress every where existed ; 
many public officers to whom arrears of pay 
were due from the public treasury were expos- 
ed to imprisonment, for debts contracted for the 
means of living ; some of the members of the 
board of the treasury, declared to Mr. Morris, 
that they had not the means even of sending 
an express to the army ; starvation threatened 
the troops, and nothing appeared more probable 
than their dissolution. 

In these circumstances New England made 
strenuous exertions for the supply of such arti- 
cles as her soil produced. But a supply of flour 
was to be obtained principally in Pennsylvania, 
and for this purpose funds or credit were indis- 



LIFE OF ROBERT MORRIS. 33 

pensible ; neither of which did the public pos- 
sess. Robert Morris however had credit, and 
by means of this the wants of the army were 
supplied. In writing to Thomas Lowrey, Esq., 
May 29th 1781, requesting him to purchase a 
thousand barrels of flour, he says, " To obtain 
this flour readily on good terms, I know you must 
pledge your private credit, and as I have not the 
money ready, although the means of raising it 
are in my power, I must pledge myself to you, 
which I do most solemnly as an officer of the 
public, — but lest you should, like some others, 
believe more in private than in public credit, I 
hereby pledge myself to pay you the cost and 
charges of this flour in hard money. I will en- 
able you most honorably to fulfil your engage- 
ments." 

A similar request was made, on a similar 
pledge given to Gen. Schuyler. In his letter to 
the latter, he represents the office to which he 
had just been appointed as a station which made 
him tremble when he thought of it; and which, 
nothing could have tempted him to accept but a 



34 LIFE OF ROBERT MORRIS. 

gleam of hope that his exertions '' might possibly 
relieve this poor distressed country from the ruin 
with which it was then threatened, merely for 
want of system and economy in expending, and 
vigor in raising the public money." 

In advising General Washington of these pro- 
ceedings, he says, *' I shall make it a point to 
provide the money, being determined never to 
make an engagement which cannot be fulfilled ; 
for if by any means I should fail in this respect, 
I will quit my office from that moment." 

The provisions thus procured were sufficient 
only for the immediate wants of the army. In 
order to procure further supplies in season, Mr. 
Morris, in his private capacity, made a contract 
with the state of Pennsylvania, to furnish the 
quota of specific supplies apportioned to that 
state for the current year ,• receiving as a reim- 
bursement the taxes, for raising which, laws had 
been recently enacted. 

This negociation involved in the aggregate a 
sum exceeding $1,120,000. The supplies were 
thus furnished for the army, before the money 



LIFE OP ROBERT MORRIS. 35 

could be obtained from the treasury of the state ; 
and in such a manner as to raise the credit of the 
obligations of the state, from a depreciation of 
six for one, to two for one. 

All the public resources were consumed as fast 
as they could be obtained, leaving no funds for 
any unexpected emergencies. 

In the early part of the campaign of 1781, a 
plan had been agreed on for the capture of New 
York, then in the possession of the British forces 
under Gen. Clinton ; in which the combined 
American and French armies were to be assist- 
ed by the French fleet. The Hon. Richard Pe- 
ters, and Mr. Morris, by order of Congress re- 
paired to the head-quarters of Gen. Washington, 
early in August, to consult with him on the ar- 
rangements and supplies necessary to carry the 
plan into execution. While there, information 
was received from Count De Grasse, of his in- 
tention to sail for the Chesapeake. This failure 
in the fulfilment of an engagement so confident- 
ly relied on, occasioned for once, a violent agi- 
tation in the mind of Gen. Washington-w The 



36 LIFE OF ROBERT MORRIS. 

information was communicated to Messrs. Peters 
and Morris at beat of reveille. The hour of 
breakfast found Gen. Washington calmly mak- 
ing his estimates for a southern campaign against 
Cornwallis. 

He inquired of the commissioners from Con- 
gress what they could do to assist him under 
such an unexpected disappointment. Mr. Pe- 
ters on whom devolved the duty of furnishing 
the supplies, replied, '' every thing, with money, 
without it, nothing," looking significantly at 
Mr. Morris. 

" I understand you," said the latter, " but I 
must know the amount." This was soon ascer- 
tained. Mr. Morris then found himself under the 
necessity of informing the General that he had 
no money at his command nor any means of rais- 
ing any immediately. He was however willing to 
make use of his personal credit if that could be 
made effectual. He submitted it therefore to 
the General to determine how far it might be 
prudent to rely upon this resource, the efficacy 
of which it would be necessary for him to risk. 



LIFE OF ROBERT MORRIS. 37 

Gen. Washington replied, " The measure is in- 
evitable and therefore resolved on ; I must pur- 
sue it at all hazards." 

Messrs. Morris and Peters, being enjoined to 
keep the enterprize secret, returned to Philadel- 
phia, but so cautious were they in their proceed- 
ings preparatory to the grand trial of skill and 
strength which determined the result of the war, 
that Congress were not apprized of the change 
of the plan, till the troops marched through the 
city. 

Mr. Peters was active in making the requisite 
preparations. In three or four weeks, from sev- 
enty to eighty peices of battering cannon, and a 
hundred pieces of field artillery with suitable 
ammunition were prepared and sent forward. 

All this expense, together with that of the 

subsistence and pay of the troops was incurred 

on the personal credit of Robert Morris who 

issued his notes to the amount of $1,400,000, 

which were finally all paid. Yet with all these 

exertions the cattle destined for the use of the 

army were arrested on the road for want of 

4 



38 LIFE OF ROBERT MORRIS. 

funds to procure pasturage. For the supply of 
the most unavoidable requisitions, Mr. Morris 
negociated a loan of specie with Count Ro- 
chambeau, which being put into the hands of 
Gen. Washington, enabled him, with the assist- 
ance received from Virginia and the other states, 
to act efficiently in the prosecution of the enter- 
prize. It resulted in the capture of Cornwallis, 
and reduced the British forces in America to the 
necessity of acting chiefly on the defensive, 
and thus determined the event of the war. 

At the time of these immense exertions, Mr. 
Morris was severely censured for not affording 
sufficient assistance to the southern army under 
Gen. Greene. This charge has been reiterated 
recently by Judge Johnson, in his biography of 
Greene. Besides the assistance publicly given, 
a secret agent, acting as a volunteer in the army 
with Greene, was directed in case of the most 
indispensible necessity, to supply him with small 
sums in specie. 

That he was not more liberally supplied was 
obviously owing to the impossibility of doing so. 



LIFE OF ROBERT MORRIS. 39 

That there was much suffering in the southern 
army, both for want of clothes, and other neces- 
saries, was undoubtedly true. Gen. Greene him- 
self never complained. In 1783 he writes to 
Governeur Morris, " I have the highest respect 
for Mr. Morris, minister of finance — I venerate 
his character, and the more for his engaging in 
so difficult an office under such unfavorable ap- 
pearances." 

The difficulty and almost impossibility of pro- 
curing supplies from the several states, were the 
source of immense trouble to the financier. 

Congress had no power to levy taxes. The 
states were extremely dilatory in making any 
provision bylaw, to meet the requisitions of Con- 
gress ; and after provision had been made by the 
several letjislatures, such was the condition of 
the country that it was difficult to realize the 
avails, in consequence of the want of efficient 
means of making collections. 

The public creditors were sufficiently clam- 
orous, but their complaints could not be made 
directly to the delinquent states ; and most of the 



40 LIFE OF ROBERT MORRIS. 

leaders of the several states seem to have sup- 
posed that their own state had done their share 
in making provision for the public w^ants. 

A fear that the accounts of the states with 
the union would not be adjusted increased the 
disposition to delay. The efforts of Mr. Morris 
were directed to counteract these sentiments, 
and to induce the several states to rouse them- 
selves and make strenuous exertions for the 
country. In a circular to the governors of the 
several states he says, after giving the assurance 
that his efforts should be unceasing to effect a 
liquidation of the accounts of the states with 
the union, " I make this assurance in the most 
solemn manner, and I entreat that the conse- 
quences of a contrary assertion may be most sol- 
emnly weighed and considered before it is made 
or believed." " It is by being just to individu- 
als, to each other, to the union, to all, — by gen- 
erous grants of solid revenue, — and by adopting 
energetic methods of collecting that revenue ; 
and not by complainings, vauntings and recrim- 
inations that these states must expect to estab- 



LIFE OF ROBERT MORRIS. 41 

lish their independence and rise into power, 
consequence and grandeur." 

The establishment of a national bank was 
one of the early financial measures of Mr. Mor- 
ris. He had given his attention to the subject 
as a means of facilitating commercial operations 
before the war, and had taken some steps to 
establish a bank. Soon after his appointment 
to the office of superintendent of finance, he re- 
ceived a letter from Mr. Hamilton, recommend- 
ing this measure as one calculated to be useful 
to the common cause in the low state of public 
credit; and suggesting a plan of operations. In 
reply, Mr. Morris expressed his satisfaction to 
find their views coincident on this subject, and 
ffave him the assurance that he would soon see 
a proposition for a bank, differing from the plan 
proposed by him principally in the exclusion of 
real estate as part of the capital, which Mr. 
Morris thought inexpedient. It was not ex- 
pected however that funds for the prosecution 
of the war, would be created by the establish- 
ment of the bank. " Anticipation of taxes and 

4* 



f) 



42 LIFE OP ROBERT MORRIS. 

funds," he remarks on presenting the subject 
to the consideration of Congress, '^ is all that 
ought to be expected from any system of pa- 
per credit; this seems as likely to rise into a 
fabric equal to the weight, as any I have yet 
thought of" The plan received the approba- 
tion of Congress by resolution on the 26th of 
May 1781, Massachusetts alone dissenting. But 
it could not be carried into immediate execu- 
tion. On the 31st of Dec. 1781, a charter of 
incorporation was granted by Congress which 
was subsequently confirmed by an additional 
charter from the state of Pennsylvania, and on 
the 7th of January 1782, it was opened for the 
transaction of business. 

In the preamble to the act of incorporation 
by Congress it is recited that the exigencies of 
the United States required that such an act 
should be immediately passed. They had pre- 
viously recommended the grant, by the several 
states, of an express power to Congress to pass 
such an act of incorporation, but this not hav- 
ing been done, they assumed the power, to do 



LIFE OP ROBERT MORRIS. 43 

it on the ground of the necessity of the case. 
The act, however, contained a proviso that it 
should not be construed to authorize the ex- 
ercise of any powers in any of the states repug- 
nant to the laws or constitution of such state. 

The capital of the bank was to be |400,000, 
in shares of four hundred dollars each, in gold 
and silver. 

It was to be under the management of twelve 
directors chosen from the stock-holders, each of 
whom was to be entitled to a vote for every 
share of the stock belonging to him; the direct- 
ors to choose the President. 

The bank was under obligation to present a 
statement of their cash account and of the 
notes issued and received, to the superintend- 
ent of finace every day, and was besides liable 
to be examined by that officer in relation to the 
management of their affairs, and for that pur- 
pose he was to have access to all the books and 
papers. 

" The use of the bank," says Mr. Morris in 
an address to the public, " is to aid the govern- 



44 LIFE OF ROBERT MORRIS. 

ment by their moneys and credit, for which they 
will have every proper reward and security ; to 
gain from individuals that credit which property, 
abilities and integrity never fail to command ; to 
supply the loss of that paper money which, be- 
coming more and more useless, calls every day 
more loudly for its redemption ; — and to give a 
new spring to commerce in the moment when 
by the removal of all restrictions, the citizens of 
America shall enjoy and possess that freedom, 
for which they contend." 

One object, avowed by Mr. Morris, was *'to 
unite the several states more closely together in 
one general money connection, and indissolubly 
to attach many powerful individuals to the cause 
of our country by the strong principle of self- 
interest." 

Whatever dangers the champions of nullifi- 
cation might apprehend to their schemes of self- 
aoTffrandizement, from the effect of such a meas- 
ure, in attaching men of property to the inter-, 
ests of the union, there can be no doubt but in 
Robert Morris, this expectation was a patriotic 



\ 



LIFE OF ROBERT MORRIS, 45 

motive. Divide and conquer, was the plan 
of the common enemy, but it never was, and 
never will be adopted by the friends of the best 
interests of any part of the union. 

The aid afforded by the bank to support the 
cause of the country, considering its limited 
amount of capital, was very considerable. In 
the course of the first six months it had ad- 
vanced to the United States a sum equal to its 
whole capital, besides $80,000 on an account 
of the state of Pennsylvania. 

Considerable facilities were also obtained by 
the public, by discounts on the notes of individ- 
uals and by credit furnished to contractors for 
the army. Great numbers availed themselves 
of the vaults of the bank as a place of deposit 
for money, which for want of opportunities of 
advantageous investments had been long con- 
cealed. By this means the bank was enabled 
to extend its business to a great amount, and to 
afford assistance not only to the United States, 
and the state of Pennsylvania, but to the city 



46 LIFE OF ROBERT MORRIS. 

of Philadelphia and to great numbers of private 
citizens. 

" It may then," says Mr. Morris, in an ad- 
dress to the public, " be not only asserted, but 
demonstrated that without the establishment of 
the national bank, the business of the depart- 
ment of finace could not have been performed." 
" The establishment of the national bank," he 
observes in a letter, (March 25, 1782,) " an- 
swers all the purposes expected from it, and 
even exceeds the most sanguine hopes that 
were formed by its warmest advocates. As the 
operations of the bank become extended, the 
benefits of the institution will be felt in the 
extreme parts of the United States. Their notes 
acquire every day a greater extent of circula- 
tion, and they have obtained the most perfect 
confidence hereabouts." 

Mr. Morris on first entering on the duties of 
his office endeavored to introduce a system of 
regularity in the economy of the public finan- 
ces, and this with the invariable punctuality 
with which he fulfilled not only his own private 



LIFE OF ROBERT MORRIS. 47 

contracts, but the engagements made by him 
on account of the public, produced the most 
beneficial results. General Washington said 
''the abilities of the present financier have done 
wonders." This too was the sentiment of all 
who had the means of judging, or of tracing 
effects to their causes. But notwithstandinfif 
the temporary assistance derived from the per- 
sonal credit of Mr. Morris, and from the bank, 
the difficulty of raising supplies from the states 
was the source of great embarrassment. The 
issue of private notes and the loans obtained 
from the bank could be useful only as tempo- 
rary expedients in the anticpation of funds. 
Having been unsuccessful in their most impor- 
tant manoeuvres, and reduced to the necessity of 
acting on the defensive, the enemies of American 
freedom still cherished strong expectations that 
the derangement of our finances, the dissen- 
tions among the states, and the discontent of the 
unpaid officers and soldiers in the army would 
finally reduce the country to the necessity of 
relinquishing the advantages obtained by the 



48 LIFE OF ROBERT MORRIS. 

sacrifices which had already been made. Nor 
were such expectations so absurd as upon a 
superficial view would now appear. It was with 
the hope of disappointing them that Mr. Morris 
continued to discharge the duties of his office, 
under circumstances of great embarrassment 
and perplexity. 

His exertions to induce the states to furnish 
the means of paying the expenses and sustain- 
ing the credit of the union, were constant, vigor- 
ous, urgent, and dignified, but unfortunately in 
a great measure, though not entirely, unsuccess- 
ful. The just claims of individuals which he 
was incessantly called upon to satisfy in behalf 
of the country, and the impossibility of relieving 
their distresses, was a source of a most unpleas- 
ant state of feeling. The call for an impost 
of five per cent, which Congress had recom- 
mended for the purpose of providing, among 
other things, for the interest of the just claims 
against the United States, was not responded to. 
The means of meeting the current expenses of 
war, could not be diverted to any other purpose. 



LIFE OF ROBERT MORRIS. 49 

*'As to making advances from my own private 
fortune," said Mr. Morris, " I have already 
before the acceptance of the office I now hold, 
expended much more in that way, than ought 
to have fallen to any private citizen." It was 
also obvious, that some public emergency might 
happen before the final termination of the contest 
in which, as a last resort, Mr. Morris could apply 
his own means to better purpose for the salvation 
of the country, than in the payment of debts not 
contracted upon his credit. We are authorized 
to believe that in such a case, his country would 
have had the same proofs he had previously 
given, of his devotion to her cause. 

The complaints, the malicious insinuations, 
and open calumnies, which were heaped upon 
Mr. Morris during his continuance in office, by 
the discontented or the designing, have now lost 
their force. They were numerous and bitter, 
but after what we have seen of the man, none 
of them having, at any time, been substantiated 
by evidence, they need no refutation, and there- 
fore require no repetition. 

5 



50 LIFE OF ROBERT MORRIS. 

By a resolution of Congress, August 29, 1781, 
it was determined that, for the time being, there 
should be appointed an agent of marine with 
authority to direct, fit out, equip and employ the 
ships and vessels of war, belonging to the Unit- 
ed States, according to such instructions as he 
should, from time to time, receive from Con- 
gress ; — that all prizes belonging to the United 
States, should be sold under his direction ; and 
that all accounts and demands for pay, and for 
all disbursements and expenses respecting said 
marine, should be transmitted to said agent for 
settlement and payment : and that he should 
cause regular entries to be made and kept. 

By another resolution, on the 7th of Septem- 
ber following, it was ordered that until an agent 
of marine should be appointed, all the duties, 
powers and authority, assigned to the agent 
of marine, should be devolved upon, and ex- 
ecuted by the superintendent of finance ; and 
that as soon as he should take upon him the 
execution of those duties, powers and authority, 
the functions and appointments of the board of 



LIFE OP ROBERT MORRIS. 51 

admiralty, the several navy boards, agents, and 
all civil officers under them, should cease. 

Mr. Morris accepted the office of an agent of 
marine with great reluctance ; but the same un- 
tiring zeal and patriotism, which had already 
caused him to promise that the American Con- 
gress might command him, and every thing he 
had, except his integrity, induced him to wave 
his objections. No other agent being appointed 
by Congress, he therefore continued to perform 
the important and responsible duties of an agent 
of marine, till the time of his resignation of the 
office of superintendent of finance. 

On the 24th of January 1783, the prospect of 
peace being favorable, and that of a permanent 
provision for the just demands against the union, 
having been deferred to an uncertain future, 
Mr. Morris announced his intention to resign 
his offices in the succeeding May. To prevent 
the apprehended consequences of the loss of 
confidence in the government which it was 
expected would follow from this announcement. 



52 LIFE OF ROBERT MORRIS. 

an injunction of secrecy was immediately laid 
on this communication. 

A committee, afterwards appointed to devise 
the most proper steps to be taken in consequence 
of this resolution, solicited and obtained his con- 
sent to continue in office till arranorements could 
be made for the reduction of the armv, and the 
engagements that should be made by him in 
consequence, and those already entered into by 
him, should be completed. 

On the 17th of June 1783, a committee ap- 
pointed to examine into the transactions of the 
office of finance reported, 

" That the business of the office had been 
conducted with great ability and assiduity, in 
a manner highly advantageous to the United 
States, and in conformity with the system laid 
down by Congress ; — that the public accounts of 
receipts and expenditures had been regularly, 
and punctually kept, that many of the accounts 
which preceded that institution had been already 
settled, and most of the others put in a train of 
adjustment ; — that those who had been entrusted 



LIFE OF ROBERT MORRIS. 53 

with public money after the institution of that 
office, had been regularly called on for their 
accounts, which had been furnished except in 
the case of two officers under the quarter-mas- 
ter general, who had given their reasons for 
delay ; — that the states had also been called on 
for their accounts of specific supplies furnished 
for the union, which however had not been 
rendered ; — that in the cases of several persons 
who had before been intrusted with public mo- 
ney the defect of the law in the several states 
deprived the superintendent of the power to 
compel them to a proper settlement ; — that im- 
portant reforms had been introduced, in the 
management of the public expenditures, and that 
the order and economy which had been mani- 
fested had been attended with great savings 
of public money, as well as many other bene- 
ficial consequences; — that in the commissary 
department alone a saving had been made in 
the pay of 250 persons discharged from public 
service, amounting to 126,300 dollars, besides 
rations for themselves and horses ; — that in one 

5* 



54 LIFE OF ROBERT MORRIS. 

instance, at the post of Philadelphia, a new ar- 
rangement had been made, effecting a saving 
in the article of forage only, of 990 tons of 
hay, one thousand tons having been demanded 
and only ten tons found necessary ; — that from 
the 14th of May, 1781, to the 1st of January, 
1783, the whole amount brought into the treas- 
ury was 82,726,334 ; and the expenditure was 
$3,131,046; — that the expenditures of the year 
1782, exceeded the receipts by the sum of 8404, 
713, which had been supplied by a circulation in 
notes of the financier; — that the accounts had 
been fairly stated to Congress ; — that the busi- 
ness of the office of the treasury had been con- 
ducted with great diligence and accuracy, and 
in conformity with the rules laid down by Con- 
gress ; — and in relation to foreign money trans- 
actions, that the bills of exchange which the 
superintendent had drawn, had been duly cred- 
ited at the treasury ; this being the only thing 
in those transactions which respected the super- 
intendent. 



LIFE OP ROBERT MORRIS. 55 

At the opening of Congress, on the 1st of 
November, 1784, Mr. Morris finally resigned 
the office of superintendent of finance. On 
this occasion, a grand committee of eleven 
reported that they were of opinion that " the 
United States had derived very great advantages 
from the arrangement and management of their 
finances, under the administration of the Hon. 
Robert Morris, as superintendent thereof." On 
this committee were Mr. Jefferson, and Mr. 
Gerry, who were afterwards prominent leaders 
of the party opposed to that of which Mr. 
Morris was considered a strong supporter. 

On this occasion also, Mr. Morris submitted 
to Congress an account of the finances during 
the time of his administration, prefixed to which 
is an address to the inhabitants of the United 
States. In closing some remarks upon the 
facilities furnished by the bank, he acknowl- 
edges his obligations, as a public officer, to that 
institution, and adds the assurance that their 
confidence in him as the head of the department 
of finance, was as extensive as prudence could 



56 LIFE OF ROBERT MORRIS. 

possibly admit ; and only confined by their duty 
and their means. 

In this address, he urges, from his own sad 
experience of the mischiefs of a contrary policy, 
the necessity of making due provision for the 
public debts, and establishing a more powerful 
and energetic general government. 

" The payment of debts," he observes, "may 
indeed be expensive, but it is infinitely more ex- 
pensive to withhold the payment. The former 
is an expense of money when it may be com- 
manded to defray it ; but the latter involves the 
destruction of that source from whence money 
may be commanded when all other sources fail. 
That source, abundant, nay, almost inexhausti- 
able, is public credit. The country in which it 
may be preserved with the greatest ease, is 
America. And America is the country which 
stands most in need of it, whether we consider 
her moral or political situation ; or whether we 
advert to her husbandry, commerce or manu- 
factures." 

" We are just emerging from a long and ex- 



LIFE OF ROBERT MORRIS. 57 

pensive war; a war more expensive than it ought 
to have been, because the needy can never 
economise, and because no degree of talents 
can compensate for the want of experience. 
How soon we may be plunged into another, is 
known only to him from whom no secrets are 
hidden. But he has enabled us by reasoning 
on past events, to conclude that the only moral 
surety for peace, is a state of constant prepara- 
tion for hostilities." 

"If a rupture should happen within the com- 
ing year, to whom are we to look for succor ? 
And from whom shall we ask their treasure, or 
their blood? — Shall we apply to those veterans 
who lately bore our banners in triumph ? Will 
they not show their scars, and point to the re- 
cord of their wrongs ? Our prospects, in case of 
war, are far from flattering ; and unless our 
union be more strongly cemented, they will be- 
come gloomy indeed. The inhabitants of a 
little hamlet may feel pride in the sense of scj)- 
arate independence. But if there be not one gov- 
ernment which can draw forth and direct the 



58 LIFE OF ROBERT MORRIS. 

combined efforts of United America, our inde- 
pendence is but a name, our freedom a shadow, 
our dignity a dream. To you. Fellow-citizens, 
these sentiments are addressed, by one who has 
felt their force. In descending from that emi- 
nence on which your representatives had placed 
him, he avoids the shafts which calumny had 
aimed. He has no longer any personal interest 
in those jealousies and distrusts, which have 
embarrassed his administration, and may prove 
your ruin. lie no longer asks for confidence 
in himself But it is his duty to declare his sin- 
cere opinion, that if you will not repose in the 
members of that general federal government, 
which you yourselves have chosen ; that confi- 
dence and those powers which are necessary, 
you must, and you will, in no very distant pe- 
riod, become the dupes of European politics." 
" What may be the final event, time only can 
discover ; but the probability is, that first divid- 
ed, then governed, our children may lament in 
chains, the folly of their fathers. May Heaven 
avert these evils, and endow us with wisdom 



LIFE OF ROBERT MORRIS. 59 

SO to act, as may best promote the present and 
future peace, prosperity and happiness of the 
country." 

The accounts presented with this address 
were a plain statement of the results of the 
financial operations of government, during the 
time of his continuance in office, in the form of 
a merchant's ledger. The inspection of these 
accounts will show that he was master of his 
business, a perfect accountant, an able financi- 
er, and an honest man. 

It is said to have been stated by two members 
of Congress from Massachusetts, that the expen- 
ses of prosecuting the war, were reduced after 
the appointment of Mr. Morris to the office of 
superintendent of finance, from eighteen mill- 
ions of hard dollars, to about four millions ! 

At the close of the war, the spirit of partisan 
jealousy was directed, amongst other things, to 
the bank. In 1785, on petition, and a report of 
a committee, assuming the statements of the pe- 
tition as true, without making any inquiry into 
the proceedings of the bank, the legislature 



60 LIFE OF ROBERT MORRIS. 

of Pennsylvania passed an act purporting to 
repeal the charter granted by the state. The 
operations of the bank were continued under 
the charter of Congress, and on the ground that 
the repeal was illegal ; but it was considered 
an object of great importance to procure a 
renewal of the charter from the state. For 
this purpose Mr. Morris consented to be a 
candidate for the legislature ; and being chosen, 
he exerted himself in an eloquent and powerful 
argument, in favor of the renewal of the charter. 
The debate was a subject of great interest, was 
published at length by M. Carey, and is probably 
the best specimen of the talents of Mr. Morris, 
that can now be found. At this time, the 
opposite party were too strong. The idea of 
a bank for the benefit of merchants, found but 
little faVor in the other portions of the communi- 
ty. It was supposed that the bank absorbed the 
funds, which otherwise might, by means of loan 
offices, be lent to farmers and others, on the 
security of real estate, for longer terms than the 
bank was accustomed to grant on discounts 



LIFE OF ROBERT MORRIS. 61 

to merchants. The question of renewal was 
lost at this time, by a majority of thirteen votes ; 
but the friends of the bank were successful in 
the succeeding legislature. 
* In 17S7, Mr. Morris was elected a member of 
the convention, which framed the constitution 
of the United States. J In the form of government 
to be adopted, those who had seen the weakness 
and inefficiency of the confederation of inde- 
pendent states, furnishing or withholding sup- 
plies for the union, as each one thought its own 
individual interest required, were desirous to 
render the operations of the general government 
independent of the states. Among those who 
had most sensibly felt the necessity of such a 
course, was Mr. Morris. 

d In that body, Mr. Morris made a speech in 
which he advocated the choice of senators for 
life. He also advocated the opinion, that they 
ought to be " men of great and established prop- 
erty — an aristocracy J^ 

He went on to add, " History proves, I ad- 
mit, that men of large property will uniformly 

6 



G2 LIFE OF ROBERT MORRIS. 

endeavor to establish tyrranny. How shall we 
ward off these evils? Give them the second 
branch, [the senate,] and you secure their weight 
for the public good. They are responsible for 
their conduct, and this lust of power will ever 
be checked by the democratic branch, and thus 
form the stability of your government. But if 
we continue changing our measures by the 
breath of democracy, who will confide in our 
engagements ? Who will trust us ? Ask any 
person whether he has any confidence in the 
government of Congress, [under the confedera- 
tion,] or that of the state of Pennsylvania, — he 
will readily answer you, no. Ask him the rea- 
son, and he will tell you, it is because he has 
no confidence in their stability."* v 

Such a feature in the senate would probabl|r 
then have found little favor with the people, and 
would now find much less. The sentiment is 
easily accounted for in Mr. Morris from the ex- 
perience he had Iiad of the difficulty of dealing 
with the legislatures of the States, from his ob- 
* Reported by Chief Justice Yates. 



LIFE OF ROBERT MORRIS. (y?> 

servation of the effects of frequent changes in 
the old Congress, and from his probable opinion 
of the excellence of the British constitution, as 
a model. Yet with his admission of the prob- 
ability that rich men would endeavor to estab- 
lish tyranny, it is not to be supposed he would 
have favored the principle without what he con- 
sidered a sufficient check, in the house of rep- 
resentatives. 

It is to be hoped that the people of the United 
States will never grant to any class of men any 
other exclusive favors than such voluntary hom- 
age as may be rendered to public and private 
virtue, combined with talents devoted to the 
public good. Yet it is easy to believe tliat the 
sentiments of Mr. Morris, respecting the form- 
ation of the senate, were honestly formed as the 
result of his observation and reflections, from 
the most pure and patriotic motives. In the ab- 
sence of all evidence of the contrary, common 
charity and justice require this. In the consti- 
tution which finally received the approbation of 
Mr. Morris, the power of making a change in 



64 LIFE OF ROBERT MORRIS. 

the character of the senate, not suddenly, but 
gradually, is, with great propriety, retained by 
the people. 

In October, 1788, he was appointed by the 
legislature of Pennsylvania, as one of the sen- 
ators to represent that state under the new con- 
stitution. He had once declared, that '^ a firm, 
wise, manly system of federal government, was 
what he had once wished, what he then hoped, 
what he dared not expect ; but what he would 
not despair of." Such a government, however, 
he saw, with Washington at its head; and he 
gave it his ardent and firm support. 
/ At the close of the war, he had engaged in 
the East India and China trade, and in the 
spring of 1784, despatched the first American 
vessel that ever appeared in the port of Canton. 

In 1787, on the 20th of June, he despatched 
the Alliance, to make what was then called an 
''out of season" passage, by avoiding some of 
the periodical winds which prevail in the south 
seas. This was eflfected by a passage around 
the south cape of New Holland ; and the appear- 



LIFE OF ROBERT MORRIS. 65 

ance of the ship at Canton, the 22d of Decem- 
ber, created great astonishment, / It has how- 
ever been since found, that American enterprise 
could do other things, which had never been 
done before, and the wonder that they should 
be found, out of the common track, has ceased. 

The British lords of admiralty applied to Mr. 
Morris for information respecting the course of 
the Alliance, which is said to have been marked 
out by him and Governeur Morris, previous to 
her departure. 

Some time after the close of the revolutionary 
war, Mr. Morris engaged extensively in landed 
speculations. ; 

In the expectation of speedy and profitable 
sales, he made large purchases, and incurred / 
great expenses in procuring settlements. He 
was not the only man who indulged the expec- 
tation of great profits from speculations of this 
nature. It seems to have been a very prevalent 
opinion, that upon the establishment of our in- 
dependence, Europe would be ready to send, 

not laborers only, but men of property and influ- 

6* 



66 LIFE OP ROBERT MORRIS. 

ence, to settle our extensive and unpeopled 
domains. The birth-place of liberty and the 
asylum for the oppressed, it was thought, would 
have irresistible charms for those who could not 
. enjoy the privileges to which they were justly 
entitled in their native land. 

But peace did not immediately bring with it 
all the advantages that were expected. Our 
government was unstable. Our commerce was 
unprotected. The open, or half concealed dis- 
sentions among the states gave fearful augury of 
an eventual dissolution of the confederation. 
Till the adoption of the federal constitution, we 
were not a nation. Instead of offering a sure 
pledge of great advantages to those who could 
overcome their predilection for home, and dis- 
pose of their property, our own liberties appear- 
ed to be held by a feeble and precarious tenure. 

Few wealthy emigrants were willing to incur 
the risk of exchanging the limited advantages 
enjoyed in the old world for uncertain prospects 
in the new. 

Mr. Morris, in his landed speculations, was 



LIFE OF ROBERT MORRIS. 67 

unfortunate. Thousjh in earlier life he had sus- 
tained the credit of the country, he now found 
it impossible to prevent himself from falling un- 
der the weight of his own private embarrass- 
ments. There has been a time, which some 
men now living will not forget, when even hon- 
est men might be imprisoned for debt, at the 
will of a creditor. If we knew the names of 
the creditors of Robert Morris, who so rigor- 
ously enforced the penalty of laws made for 
dishonesty and fraud, we would, in charity, 
throw over them the mantle of oblivion.i, Rob-i 
ert Morris, in his old age, was imprisoned for 

debt! Whenever Washino-ton came to Phila-. 

I 

delphia, his first visit was to the man who had/ 
done every thing which could be done for the 
liberty of his country, but by the laws of that 
country, was, for his misfortunes, condemned to* 
imprisonment. Mr. Morris himself however, ^ 
made no complaint, but submitted, without re- 1 
pining, to the laws. 

In connection, however, with his speculations 
in lands, he became interested in the policy of 



68 T-TFE OF ROBERT MORRIS. 

internal improvements. His influence, as pres- 
ident of the Pennsylvanian Society for the Im- 
provement of Roads and Inland Navigation, and 
of the Schuylkill and Susquehanna Navigation 
Company, and his calculations and writings, 
are believed to have given the strongest impulse 
to the liberal course of the state of Pennsyl- 
vania on the subject of internal improvements. 
How far he may have been instrumental in pro- 
voking the public men of New York and other 
states to emulation, and how much the country 
at large may owe him on this score, will proba- 
bly never be known. But among the friends 
of these important means of enriching and ce- 
menting the interests of different portions of the 
country, as we hope they will be enriched and 
cemented before our union is finally broken, the 
name of Robert Morris should occupy a high 
and honorable place. 

Mr. Morris, as a private citizen, commanded 
the respect and confidence of those who were 
most bitterly opposed to him in politics. To 
every candid reader of the history of the revolu- 



LIFE OF ROBERT MORRIS. 69 

tion, and of the no less hazardous politicial tri- 
als of the country which succeeded it, it will be 
obvious that any other general course of politics, 
than that which he pursued, would have been, 
in him, a dereliction of those principles of in- 
tegrity and patriotism by which he had always 
been guided. 

Faction and calumny found employment in 
censuring his public administration. But not- 
withstanding the thousand insinuations, which 
were continually thrown out against him, by pub- 
lic creditors whom the resources of the country 
could not satisfy, or by concealed enemies of 
American independence, his integrity and his 
honor was, and will remain forever untarnished. 

In 1785, a resolution was passed by Congress, 
to appoint a committee to enquire into the ad- 
ministration of Mr. Morris as superintendent 
of finance, but no committee was appointed. 
That he might not appear to court those marks 
of approbation which had, on former occasions, 
been voluntarily given, he forebore to press the 
subject, though he was extremely solicitious 



70 



LIFE OF ROBERT MORRIS. 



to clear himself from the suspicion which the 
passage of the resolution was calculated to throw 
upon him. In 17S8, and 1789, he exerted him- 
self to procure an adjustment of his accounts, 
but was unable to brincr them to a close. On 
the adoption of the new constitution, the officers 
of the treasury declined to proceed in the adjust- 
ment without special authority. 

In 1790, Mr. Morris presented to the Senate, 
of which he was a member, a dignified memo- 
rial, complaining of the neglect of Congress to 
carry their former resolution into effect, by 
which his reputation was injuriously effected ; 
and soliciting the appointment of commissioners 
to make a final adjustment of all unsettled ac- 
counts. In this memorial, he speaks of injuri- 
ous imputations on his official conduct, as " the 
only fruits of services, which, at the time they 
were rendered, he trusts he may without incur- 
ring the charge of presumption, affirm, were 
generally esteemed, both important and merito- 
rous, and were at least rendered with ardor and 



LIFE OF ROBERT MORRIS. 71 

zeal, with unremitted attention and unwearied 
application." 

The senate passed resolutions for appointing 
and paying commissioners to make the investi- 
gation requested, and report to the president. 
If the public records, which have been pub- 
lished, contain the result of the investigation, 
it is not easy to find it. Happily, to sustain 
the reputation of Mr. Morris, it is by no means 
necessary. 

His abilities were never questioned. His pa- 
triotism was more severely tried than that of 
any other man, during the revolution. The pro- 
ceedings of the commander in chief were open 
to the observation and applause of all. But the 
operations of the superintendent of finance be- 
came known, rather by means of the embarrass- 
ments which it was impossible for him to relieve, 
than by the advantages received. 

A foreign historian* has recorded the opinion 
that " the Americans oiocd, and still owe as much 
((cknuwledgmenf to the Jinan cial opcrcdions of 

* BoUa's War of Independence, vol. 3, p 343. 



72 LIFE OF ROBERT MORRIS. 

Robert Morris, as to the negociations of Benjamin 
Franklin, or even to the arms of Washington. ^^ 

Doct. Ramsey says that Mr. Morris arranged 
the accounts and affans of the treasury " with 
so much judgment, tliat economy, method and 
system, soon took the place of extravagance 
confusion and irregularity. The personal and 
unsullied credit of the superintendent of Fi- 
nance was a powerful auxiliary to the govern- 
ment, — it facilitated contracts in behalf of the 
army, and lessened the evils which otherwise 
would have resulted from the arrested circulation 
of the paper currency." 

" In this crisis of affairs, the services of the 
superintendent of finance, were as beneficial to 
the union, as were, at any period of the war, the 
great abilites of the illustrious commander in 
chief of the armies of the United States." 

In private life, he was noted for his cheerful- 
ness and benevolence, which attracted the es- 
teem of a numerous circle of friends and ac- 
quaintances, as well as the grateful veneration 
of the people at large. 



LIFE OF ROBERT MORRIS. 73 

His manners were those of one who thought 
that the best way to appear to be a gentleman, 
was, to be one in reality. Hence there was no 
appearance of affectation. His fine, open and 
benevolent countenance, often lighted up with 
a smile of pleasantry, but never tinged with mo- 
roseness or melancholy, though his features were 
strongly marked, manifested a cordial good will ; 
such as would rather stimulate to the perform- 
ance of a kind action, than to claim the merit 
of it. 

Mr. Morris was no less esteemed, in private 
life, than he was honored in public, by all 
who had opportunity to know his worth. It is 
said that no one was more ready than he, to as- 
sist in the promotion of objects of local improve- 
ment, in the encouracrement of meritorious fel- 
low-citizens, or of a faithful commercial agent. 
For almost half a century, his house was open as 
the seat of elegant and generous, but not osten- 
tatious hospitality, to all strangers in good soci- 
ety, who had occasion to visit Philadelphia : and 

the numerous friends of American independence 

7 



74 LIFE OF ROBERT MORRIS. 

found, in the hearty welcome they received, and 
in the manly and dignified friendship of their host, 
a new motive to perseverance in her cause. 

He was invited by General Washington to 
take the office of secretary of the treasury, under 
the constitution ; but the object for which he had 
performed the duties of a similar office, under 
the most disheartening embarrassments, had 
been achieved, and the station offered no induce 
ments to him, to subject himself again to the 
clamors of a host of public creditors, and inter- 
ested partisans. He hnwevec recommended Al- 

I exander Hamilton to the attention of General 
Washington, as the man most fit for such a 

' station ; and though there had for some time, 
been a coldness between those two distinguished 
men, and though General Washington seems 
not to have been aware of Hamilton's peculiar, 
and appropriate qualifications for this office, he 
was appointed ; and the appointment proved Mr. 

I Morris to be as good a judge of financial talents 

' in another, as he was able himself in that de- 
partment. 



LIFE OF ROBERT MORRIS. 75 



He was for a lono^ time afflicted with the asth- 
ma to which it was thought he had a constitu- 
tional tendency. Exercise at the pump, some- 
times as violent, as if he was laboring to save a 
sinking ship, was the remedy to which, while 
his strength continued, he resorted for relief. 
But at length, worn down by public cares, and 
private embarrassments and misfortunes, he 
drew near the close of life. Once, one of the 
firmest pillars of American independence, but 
now broken, and about to be removed from the 
edifice, America seems for a moment to have 
forgotten the debt of gratitude she owed him. 
^His death, which was merely announced in the\ 
public papers as that of a man whose exertions 
in the cause of American independence were 
well known, took place on the 8th of May 1806, 
in the 73d year of his age. It was the result 
of a long and painful illness. No public eulogi-, 
um appearsito have pointed the young men of our 
country to his virtues, and his patriotic services 
in the cause of liberty and his country, as wor- 
thy of imitation. But history will record them, 



/ 



76 LIFE OF ROBERT MORRIS. 

and wherever, in future ages, the name of 
Washington shall be known, that of Robert 
Morris, his bosom friend, shall also be honored. 

A biographical notice of Mr. Morris was giv- 
en in the Political Register, published at Phil- 
adelphia, about the time of his death. Some of 
the facts mentioned in the preceding memoir, 
are given at greater length in the biography of 
Morris, by Robert Wain, Jr., published with 
that of the other signers of the declaration of 
Independence, in nine volumes. To this we 
would refer such of our readers as may have ac- 
cess to it, for a more extended history of the 
man to whom our country is so much indebted. 
There have been several other brief notices of 
the life of Mr. Morris, given as parts of larger 
works. It is believed, however, that no separate 
account of his life has been given, till the pres- 
ent time. How far our attempt may supply a 
desideratum, it is for the public to determine. 



EXTRACTS 



FROM THE 



SPEECHES OF ROBERT MORRIS. 



EXTRACTS 



FROM THE SPEECHES OF ROBERT MORRIS, ESQ., ON 
THE QUESTION OF RE-CHARTERING THE BANK OF 
NORTH AMERICA. 



In 1785, the legislature ef Pennsylvania passed 
an act purporting to repeal the charter of the bank 
of North America, which had been established in 
1781, principally by the influence of Robert Morris, 
for national purposes, and had been conducted, till 
that time, as a national institution. The act appears 
to have been a party measure, not previously anti- 
cipated by the friends of the bank. In 1786, Mr. 
Morris was elected to a seat in the legislature, for 
the purpose of advocating a renewal of the charter. 
The corporation had determined not to acknowledge 
the validity of the repealing act. But individuals 
petitioned for a renewal of the charter, and on a 
report of a committee in favor of the measure the 
debate arose. 

The extracts are offered to the public, not for the 
purpose of supporting the cause of the banking sys- 
tem in the United States, but principally as speci- 



80 MORRIS ON THE BANK 

mens of the style and talents of Mr. Morris in de- 
bate ; and as illustrations of the history of the Uni- 
ted States during the war of the revolution, and the 
period immediately succeeding. Every thing of a 
merely local nature is omitted ; but most of those 
passages vi^hich throw light on the history of the 
times, or the biography of Mr. Morris, or on his 
views of commerce, banking and finance, are retain- 
ed. It is conceived that the sentiments of a man 
of so much eminence, and of so much practical ac- 
quaintance with these subjects, expressed likewise, 
in a style which every body can easily understand, 
though uttered in debate, and without premedita- 
tion, will be considered worthy of respectful atten- 
tion and consideration, though they may not carry 
conviction to every mind. 

***** 
The gentleman, (Mr. Lollar from Montgom- 
ery County,) tells us, he has a strong objection 
to the bank, because it facilitates commerce. 
From this, I presume he is an enemy to all 
commerce, and thinks we would be better with- 
out it. I wish the gentleman had favored us 
with an explanation of what he meant by facili- 
tating commerce. From what he has said, I 
imagine that explanation would be, that the 
bank enables people to bring more goods into 



OF NORTH AMERICA. 81 

this country, than they otherwise could do, 
which is disadvantajreous. 

As to the theory of commerce, I do not pre- 
tend to be deeply versed in it : but I have had 
some experience in the practical part, and there- 
fore I shall go into a short investigation of the 
state of our trade since the peace of 1783. At 
that period, the people of Europe, whose atten- 

•j tion had been drawn toward us by the arduous 
struggle we had been engaged in, conceived the 

l| most flattering golden dreams respecting this 
country. After so long a war, they imagined, 
we could have no manufactures and that we 
vi^ere in want of everything. 

He that could send here the quickest, it was 
thought, would the most effectually reap the 
golden harvest. This occasioned the immense 
importation of goods which were poured into 
this country from all quarters. Goods so im- 
ported have been sold at such a great loss that 
the trade has undergone change and regula- 
tion from its own nature ; and we shall have no 
more of these wild adventurers coming amongst 



82 MORRIS ON THE BANK 

US. How the bank facilitated those gentlemen 
in the manacrement of their business I cannot 
ascertain. When they sold their goods they 
received for them either money or produce. If 
they received money, they could certainly ship it 
off without the assistance of the bank, and if 
they received produce they could have no re- 
course whatever to the bank. Perhaps the 
gentleman means that if the bank had not 
afforded the facility of procuring cash for ex- 
portation they would have been glad to take 
produce. But admitting this for argument 
sake it would make no difference, unless he 
can show that any of our produce has perished 
for want of being taken out of our hands. 

* * The gentleman from Montgomery 
has told us, that under the old government, 
when there were men in the management of 
affairs as wise as any since, they had no idea of 
a bank — and that they subsisted without it. 
The old government had no idea of an alliance 
with France ; but this observation affords no 
argument against either the one or the other. 



OP NORTH AMERICA. 83 

However, though the old frovernment had no 
idea of a bank, the commercial men of the pro- 
vince had : and I, as a merchant laid the foun- 
dation of one ; and established a credit in Eu- 
rope for that purpose. From the execution of 
this design I was prevented only by the revolu- 
tion. This assertion therefore, like many others 
is unfounded. 

It has been argued that the bank is preju- 
dicial to agriculture and improvements ; that it 
has been the cause of the high rate of interest ; 
and that usury was unknown before its establish- 
ment. These are heavy charges indeed — but 
they are not founded in fact. By what means 
can the bank injure agriculture? If discounts 
are injurious to it, then indeed, the bank may be 
arraigned. But how are discounts injurious to 
agriculture? I say they are used, on many occa- 
sions, for the express purpose of encouraging, 
agriculture, if alTording to those who want to 
purchase the produce of the country, the means 
of making such purchases, when they would not 
otherwise accomplish them, be an encourage- 



84 MORRIS ON THE BANK 

ment. Let us suppose a ship arrives here from 
the West Indies with a cargo of rum and su- 
gars, belonging or consigned to some one of our 
merchants, who has not an oppurtunity to dis- 
pose of those articles immediately. It is preju- 
dicial to have the vessel detained ; yet though 
he has value in his stores he cannot procure 
money to purchase flour to load her. In this 
situation if there be no bank there is no re- 
dress. This is by no means ideal : I have fre- 
quently experienced it myself. The house with 
which I was connected have often had abun- 
dance of goods in their stores and magazines, 
and been unable to procure specie to lade their 
vessels. At this crisis, the bank steps forward, 
and if the merchant has evidence of property 
in his possession, he procures credit — purchases 
produce — and sends off his vessel. This is the 
facility the bank gives to commerce. Without 
it the farmer and merchant would be equally 
distressed ; the former would have his wagons 
waiting in Market-street and no sale ; while the 
latter would have abundance of rum, mahogany, 



OF NORTH AMERICA. 85 

logwood, dry goods, &c. in his stores, none of 
which perhaps the other would have occasion 
for ; but by means of the bank the merchant is 
enabled to purchase, and the farmer to return 
home. * * * * 

The high rate of interest has entirely arisen 
from the distresses of persons in want of money, 
who either had no credit at the bank or run 
through what they had. They were then oblig- 
ed to make application to usurers, whose enor- 
mous demands rose in proportion to the distress- 
es of their victims. Thus interest has mounted 
from J to 2, and 5 per cent per month. But 
did the bank take this interest? No. Did it 
encourage those who took it ? No. As fast as 
they became known, they were refused dis- 
counts. Why then charge the institution with 
that which it has a direct tendency to prevent? 

* *i^ ^}^ ^^ 'ii^ 

TV* -A* •«* -TV" 

In further prosecution of his argument, Mr. Morris 
canvassed the report of the committee on whose re- 
commendation the charter of the bank had been 
repealed. 

* * Did that committee take a view of the 

8 



66 MORRIS ON THE BANK 

services which the bank had rendered to the Uni- 
ted States? I believe they did not, and yet that 
was one of the points of view in which they 
ought to have considered it ; for when chartered 
rights are to be destroyed, the matter should re- 
ally be considered in every point of view. As 
the committee did not choose to make mention 
of these services, many of which must have 
been known to them, I shall, I trust, be ex- 
cused for giving some little account of them. 

In the beginning of the year 1781, the money 
and credit of the United States were at so low 
an ebb, that some members of the board of war 
declared to me that they had not the means of 
sending an express to the army. I mention 
this, only as one instance to show that distressful 
state of our finances which induced Congress to 
appoint a superintendent which was done in the 
month of February in that year ; and a still 
stronger proof of our distress will be shown by 
the bare mention, that a motion was, about the 
time of that appointment, made in Congress, by 
an honorable delegate from the State of Vir- 



OF NORTH AMERICA. 87 

ginia, to authorize Gen. Washington to seize all 
the provisions that could be found within a circle 
of twenty miles around his camp. This motion 
having been submitted to me as superintendent 
elect, I requested that it might be withdrawn, 
and pledged myself to procure upon my private 
credit, a supply of four or five thousand barrels 
of flour, in a short time, for the use of the army ; 
and I was happy enough to succeed in the at- 
tempt. The various scenes of distress, and the 
extreme difficulties which presented themselves 
to my view at that time, were sufficient to have 
deterred any man from the acceptance of such 
an appointment ; but however unequal to the sta- 
tion, the attempt was indispensable. I found it 
absolutely necessary previous to the acceptance, 
to make certain stipulations as leading to the 
only possible chance of success. Among these 
was that of not being liable to make good the 
previous engagements taken on account of the 
United States, well knowing that such demands 
must soon have run me down. Another stipula- 
tion was made with the minister of France, for 



88 MORRIS ON THE BANK 

a credit upon the king's treasury which was 
granted in a very limited degree. That minister 
did not want inclination to go greater lengths; 
but I have reason to believe that he was limited 
by instructions, both as to the sum and terms of 
a loan, terms which it would be improper for me 
to mention here, although they would add anoth- 
er proof of our then miserable situation. 

This credit however, and the confidence re- 
posed in me by the then legislature of the state 
of Pennsylvania, laid the foundation for appreci- 
ating the paper money of this state, and enabled 
me to feed and move the army during the re- 
mainder of the year 1781. 

I was happy enough to find that assembly dis- 
posed to give every possible aid to those designs 
which were then formed for promoting the pub- 
lic service. The executive branch of govern- 
ment was equally well disposed. 

Under the pressure of those difficulties I have 
mentioned, the idea of a public, national bank 
suggested itself as a measure that might be ex- 
tremely useful in my attempt to regain, for the 



OF NORTH AMERICA. 89 

United States, that credit which had been lost. 
I made the proposal for establishing it to Con- 
gress, which met their approbation. Every one 
knows the terms on which it was offered to the 
public; and yet from the month of May, when 
the proposals were published, until the month of 
September or October following, there were not 
more subscriptions in the whole than amounted 
to about seventy thousand dollars. 

During this time one of his most Christian 
majesty's frigates arrived at Boston, and brought 
a remittance in specie of about 470,000 dollars. 
This sum was brought to Philadelphia and de- 
posited in the vaults of the bank. I determined, 
from the moment of its arrival, to subscribe on 
behalf of the United States, for those shares in 
the bank which remained vacant ; but such was 
the amount of the public expenditures, that 
notwithstanding the utmost care and caution to 
keep this money, nearly half the sum was ex- 
hausted before the institution could be organ- 
ized. In November 1781, the President and 

Directors of the bank were elected. They 

8* 



00 MORRIS ON THE RANK 

obtained a charter of incorporation from Con- 
gress, and opened the bank for transacting busi- 
ness in January 1782. I subscribed the sum 
then remaining in the treasury, being about 
254,000 dollars, into the bank stock, for ac- 
count of the United States, which became there- 
by the principal stock-holders. 

On the 1st of April 1782, the United States 
possessed stock to the amount of 252,918 28-90 
dollars, and they were then indebted for money 
borrowed of the bank 300,000, dollars by which 
it appears that if this institution had not taken 
place, the treasury would have been nearly 50, 
000 dollars worse than nothing. 

The requisitions of Congress for 8,000,000 of 
dollars, which were passed the preceding No- 
vember, required no payment from the states un- 
til May : and it is well known that long after that 
time they produced no effect. At that period 
public credit was gone to wreck, and the enemy 
built their most sanguine hopes of overcoming 
us upon this circumstance, but at that crisis our 
credit was restored by the bank. 



OF NORTH AMERICA. 91 

On the 1st of July 1782, the United States 
held to the amount of 253,000 28-90 dollars in 
bank stock and were then indebted to the bank 
400,000 dollars, which is nearly 150,000 dollars 
more than the amount of their said stock. I 
am sensible that by mentioning these transac- 
tions, I expose the President and Directors to 
the only censure which can affect them. The 
then stock-holders might with some appearance 
of reason, have complained that they had ex- 
tended their credit to the United States too far 
beyond the bounds of discretion : but let it be 
considered that they were told, and truly told by 
him who presided over the finances, that the 
fate of their country depended very much upon 
the assistance required from time to time at their 
hands. Their desire to render public service, 
and their confidence in the assurances given 
repeatedly by that officer, of faithful repayment, 
will surely justify them for having risked a part 
of the property confided to them for the secur- 
ity of the whole; but even supposing any cen- 
sure to lie, how far such censure will justify the 



93 MORRIS ON THE BANK 

present opposition of those concerned in the at- 
tack on the bank, I leave for the consideration 
of every gentleman present. 

In October 1782 the United States continued, 
as before possessed of bank Stock for 253,394 
58-90 dollars and indebted 400,000. Before 
January 1783, the President and Directors 
growing rather uneasy at this heavy loan, and 
fearing censure, called upon me for relief, and 
I sold out stock of the United States to the 
amount of 200,000 dollars, and paid 300,000 
dollars in part of the debt ; so that on the first 
of January 1783, the United States held stock 
for 53,394 58-90 dollars, and owed the bank 
100,000 dollars. On the 1st of April, the situ- 
ation remained the same. By the first of July, 
I had sold the whole of the bank stock belong- 
ing to the United States, and they remained in 
debt to the bank, 129,800 dollars. On the first 
of October 1783, this debt was increased to 
164,000 dollars, but by the 1st of January 1784, 
the United States were discharo^ed of that debt. 

The President and directors of the bank had 



OF NORTH AMERICA. 93 

no pledge after the sale of the stock, for the debt 
of the United States, other than the public faith 
given in proper writings by their officer. During 
these times of distress and want, the utility of 
the bank was not confined to the advances 
made to the superintendent for public service. 

It was eminently beneficial by extending dis- 
counts to contractors who supplied the army with 
provisions, and others concerned in trusting ar- 
ticles necessary for the supplies of the various 
public departments. Sometimes the notes were 
discounted on public, and sometimes on private 
credit. I have frequently been obliged to take 
the contractor's notes to me for the sums due to 
them, and endorse such notes in my private ca- 
pacity, so that they might obtain discounts on 
those notes to themselves. By these and such 
other means as could be devised anticipations 
were effected until public money could be col- 
lected to discharge the notes. 

From the aids given by this institution the 
United States were enabled to keep up, feed and 
clothe an army consisting of a larger number 



94 MORRIS ON THE BANK 

of men than they had had in the field before, 
or than they could have maintained without 
these aids. This army was, in every point, on a 
much more respectable footing than formerly 
and they kept the enemy at bay. 

The report says, the bank has a direct ten- 
dency to banish a great part of the specie from 
this country. From what information the com- 
mittee derived this knowledge, or whether it was 
instructive I cannot pretend to decide. But I 
maintain that it has a direct contrary tendency. 
The money of the stock-holders and depositors 
is drawn into its vortex, and how is it to be got 
out of their cellars ? The directors will not cer- 
tainly give it away. They lend it but for short 
periods,* and kw of those borrowers would risk 
a shipment of money which must so soon be re- 
paid. Formerly when a ship was put up for Lon- 
don, the remitters who w^ished to ship specie were 
obliged, if they had not the money to cast about 
for ways and means of obtaining it, either by 
borrowing or buying of their neighbors and ac- 

* The usual period was forty-five days. 



OF NORTH AMERICA. 



95 



quaintances, and away it went if they succeed- 
ed. At present, under similar circumstances 
the remitters are obliged to make application to 
the bank for discounts : but the directors, being 
interested to obstruct the shipments of money, 
and knowing those who want discounts for that 
purpose, they watch them as closely as a cat 
does a mouse and refuse the discounts until the 
ship is gone. Such refusals may possibly have 
given rise in part to the charge of partiality. 
The directors, knowing how injurious the expor- 
tation of specie is to the operations of the bank 
will not lend money for exportation. No con- 
siderable sums can be sought after, or obtained 
for this purpose without their being aware of it. 
The experience and habits they have acquired 
in the course of their management enable them 
to perceive the approaching evil ; and they en- 
deavor to counteract and obstruct it as soon as 
discovered. Thus, although they cannot pre- 
vent the exportation of specie, they render it 
far more difficult than it otherwise would be : 
and consequently the bank has no tendency to 



96 MORRIS ON THE BANK 

banish specie. The report last year, therefore, 
so far as it is grounded on this charge, is ground- 
ed on a falsehood. 

This report proceeds to tell us, that the bank, 
after banishing a great part of the specie of the 
country, collects nearly the whole of the re- 
mainder into the hands of the stock-holders. 
How this can come to pass it is not easy to as- 
certain. Every six months a dividend is made 
of the profits of the bank : and if we reflect 
who are the stock-holders, we shall find it most 
probable that the dividends are devoted to their 
current expenses, for the support of themselves 
and families, and by that means circulated again 
amongst the community. At any rate, by means 
of the profits, the stock cannot increase, unles^^ 
new shares are purchased which cannot now be 
done. And if it were to be done the number of 
stock-holders would increase with the number 
of shares sold : consequently the charge of ac- 
cumulating the wealth of the state into the 
hands of a few individuals falls to the ground. 

The report goes on to state "That the accu- 



OF NORTH AMERICA. 97 

mulation of enormous wealth in the hands of a 
society who claim perpetual duration, will neces- 
sarily produce a degree of power and influence 
which cannot be entrusted in the hands of any 
set of men whatsoever, without endangering 
the public safety." 

How is this accumulation of enormous wealth 
to take place ? If an individual possesses one 
share in the bank stock, it cannot accumulate ; 
it will always remain one share ; for the profits 
are divided and drawn out half yearly. An 
increase of the number of stock-holders, increas- 
es the number of shares ; and by experience 
has been found to reduce those profits. What 
then is meant by this accumulation ? this influ- 
ence? They are mere bugbears held out to 
terrify the ignorant and unsuspecting members 
of the community. # * # * 

Has any of this much dreaded influence shown 

itself in the legislature? I answer, no. If any 

member will say yes, let him show me when ; — 

let him show how — let him produce evidence of 

the fact. But if such influence did exist, is it 

9 



98 MORRIS ON THE BANK 

possible it would extend beyond the bounds of 
the city? One of my worthy colleagues and 
myself are stock-holders, and gentlemen affect 
to suppose we are under this influence. This 
is considering the matter in the worst point of 
view. But for the sake of an aro;ument, if we 
admit it for a moment, how far does our influ- 
ence 2.0 1 We offer our sentiments on various 
occasions : we urge reasons and arguments which 
we at least think ought to have weight and carry 
conviction. But if these arguments are oflTered 
against a certain system of measures, there are 
certain gentlemen from the country, who possess 
a kind of magic which produces a much greater 
effect than our reasoning. We carry but very 
few points against this magic charm, and with 
a vote on the question our influence is ended. 

The report goes on to say that " the bank 
is not dependent on government." I am very 
glad it is not, and hope it never will be. The 
moment it becomes dependent on government, 
that moment it is destroyed. The confidence of 
the public is necessary to its existence ; and that 



OF NORTH AMERICA. 99 

confidence has been acquired by the punctual 
compliance with its engagements. Were it 
under the control of government, the people 
would withdraw their confidence, and neither 
stock-holders nor depositors would be found to 
trust their money under such control. Gentle- 
men may say what they please of the credit of 
government; but the fact is, such credit is not 
obtained. Government ought to have credit, 
and no man wishes more than I do, to see it 
established, but not through this channel. If 
government, in the present state of things, could 
control the funds of the bank, and were to apply 
them to the use of the state, how should an 
individual whose money was taken by such 
authority obtain satisfaction ? Should he go to 
law with the state? No; the government has 
too much power, and he must submit to what it 
should dictate. ' But if the President and Direct- 
ors of the bank abuse their trust, and misapply 
the money, the law is stronger than they are, 
and the law will give him relief 

The report continues, '' the great profits of 



100 MORRIS ON THE BANK 

the blink will daily increase as money grows 
scarcer, and which already far exceed the prof- 
its of European banks, have tempted foreigners 
to invest their money in this bank, and thus to 
draw from us large sums for interest." The com- 
mittee might as well have stated that the profits 
of a mill increase in proportion to the scarcity of 
corn, by which it loses the toll, as that the prof- 
its of the bank will increase as money grows 
scarcer : for money is the life and soul of the 
bank, and as necessary as plenty of corn is to 
the mill. The first part of this clause has there- 
fore no foundation in truth. And as to that 
part relative to foreigners taking away our spe- 
cie in payment of the interest or dividends 
which will arise on their stock, I am glad of 
the opportunity of entering into the considera- 
tion of it ; having heard it frequently urged by 
sensible men, as a grievance, that this country 
should pay dividends to foreigners; which they 
consider as a kind of tribute. 

I shall remark by the way that when foreign- 
ers place money in the bank for the purchase of 



OF NORTH AMERICA. 101 

stock, it proves that instead of facilitating the ex- 
port of spiece, the institution has a tendency to 
draw it into this country. I assert that it is the in- 
terest of the country to borrow money abroad, 
and either pay interest or bank dividends for the 
use of it. Did the first settlers of America brinor 
capitals with them ? Some few individuals 
might, but the generality did not : if they could 
accomplish the bringing the necessary imple- 
ments of husbandry, it was doing a great deal. 
The settlers that have continued to follow, from 
that time to this, were in the same way. Very 
few have brought capitals, and yet nearly all 
have grown rich. How did this happen? It 
has happened by the use of European capitals. 
How were these obtained for that use ? Not by 
borrowing money, for they could not, it is true, 
obtain such loans. If they could, the country 
would have grown rich much faster. But they 
borrowed goods. America has risen to opulence 
by means of the credit she obtained in Europe. 
The goods so borrowed, or in other words 

bought on credit, were not procured upon the 

9* 



102 MORRIS ON THE BANK 

same easy terms on which money is usually lent. 
It would have been much better for the traders 
in America to borrow money at six, eight, ten, 
per cent, or at any rate of dividend, made by 
the bank j and to have purchased their goods 
with ready money so borrowed ; for with ready 
money, those purchases might have been made, 
ten, fifteen, twenty, and perhaps in some articles, 
thirty per cent cheaper than on credit. 

It is true, the merchants of England usually 
shipped goods on one year's credit without 
charging interest for that year. But it has 
always been said, and in some instances proved 
in trials in the courts of law that the year's in- 
terest is amply compensated by the advances 
put on the real cost of goods, besides other ben- 
efices derived by the English merchant, by 
means of drawbacks, discounts, &c. &/C. And 
if the American importer cannot pay at the ex- 
piration of the twelve months, an interest ac- 
count commences, and is continued in such a 
manner that he pays at the rate of compound 
interest until the debt is discharged. Under 



OF NORTH AMERICA. 103 

these disadvantaofes the credit obtained in Eu- 



3 



rope at a rate equal to fifteen, twenty or perhaps 
thirty per cent, has been the foundation of that 
prosperity which we behold in America. That 
credit has been extended by the importer to the 
country shop-keeper, and through him to the 
farmer and mechanic, who being thereby ena- 
bled to pursue their labors, have drawn produce 
from the surface and bowels of the earth, which 
has not only defrayed the whole of the cost and 
charges, but enriched the industrious. Must 
not then an institution which draws money from 
Europe for the use of our citizens at the rate of 
7 3-4 or 8 per cent be extremely beneficial? 
Could America by means of such institutions, 
or by any other means, obtain loans suflicient to 
purchase all the goods wanted from Europe^ 
with ready money, she would find a vast and 
lastinor advantao-e in it. 

The plan and utility of a loan office is very 
well understood. — A farmer borrows at that of- 
fice at the rate of six per cent per annum inter- 
est. This enables him to improve his land to the 



104 MORRIS ON THE BANK 

best advantage: and by well directed industry, 
he raises annually, from that land, an income 
exceeding the rate of interest ; which soon en- 
ables him to discharge the debt. In like man- 
ner if we can create a credit in Europe, and 
borrow at the rate of six, eight, or ten per cent, 
so long as such loans can be employed to raise 
an income exceeding the interest paid, we en- 
rich ourselves by the difference. The establish- 
ment of the bank has created that credit in some 
degree : and Pennsylvania, so long as her citi- 
zens can derive a better income from the capi- 
tals of Europeans, vested in our bank stock, 
than those Europeans derive from the dividends, 
ought to hold out encouragement for an increase 
of such stockholders, rather than pursue meas- 
ures for diminishinor their shares. 

The report proceeds, " foreigners will be more 
and more induced to become stock-holders, un- 
til the time may arrive when this engine of pow- 
er may become subject to foreign influence. 
This country may be agitated with the politics 
of European courts ; and the good people of 



OF NORTH AMERICA. 105 

America reduced once more to a state of subor- 
dination and dependence on some one or other 
of the European powers." 

This conveys a most extraordinary position ; 
that foreigners by depositing their money with 
us, should become our enemies, and seek our de- 
struction ; and that those who place confidence 
in us, shall endeavor to ruin us. I hardly im- 
agine that it can require a serious answer. The 
contrary proposition is self-evident. Had we at 
every court in Europe, persons so warmly inter- 
ested in our favor as those stock-holders must 
be, we should have supporters in case any of the 
courts should form hostile designs against us. 
Nothing can make such stock-holders our ene- 
mies but breaking our contracts with them. 

•?r TV* TP TV" 

Mr. Whitehill and Mr. Finlay spoke in opposi- 
tion. — Mr. Morris replied. 

***** 

The gentlemen opposed to the bank constant- 
ly hold out the idea that the persons interested 
in it are always the same, and that it is a mo- 
nopoly confined to a few. Now it is certain, that 



106 MORRIS ON THE BANK 

on the contrary, the property in the bank is 
constantly changing hands. Where then is 
this permanent interest which should indtice us 
to sacrifice the" good of the country to the good 
of that establishment? The market is constantly 
open for the sale and purchase of this bank 
stock, and if the gentlemen in opposition seri- 
ously believe the advantages which the}" say are 
derived from that stock, why do they not invest 
some part of their property in it, for property 
they have, and there are always shares to be sold. 
The holders of that stock differ as widely, I 
presume, in their political principles, views, 
pursuits and desires, as the holders of lands, 
houses and other property. These gntlemen 
may, when they please, be of the number. 
How then is this cry of monopoly supported 1 

In the notes which I have taken of the 
speeches of my opponents, I so frequently meet 
with paper money — paper money — paper mo- 
ney — that it will be impracticable for me to fol- 
low them throughout that topic, and speak upon 
U as often as they have done. 



OF NORTH AMERICA. 107 

I find however that this is the great sore, and 
cannot help expressing my astonishment at the 
constant cry for paper money — [bills of credit 
issued on the faith of the government of the 
State,] by the country gentlemen when it is 
notorious that they will not sell the produce of 
their farms for it. No merchant with ever so 
much paper money at command, can purchase 
the produce of the country for exportation. 
Therefore I cannot ascribe this constant cry 
for paper money to any other cause than a 
desire to pay debts with less than their just 
amount, or to purchase lands at less than their 
value. I insist that there is no necessity for 
paper money. No industrious man in his indi- 
vidual capacity can feel the want of it, and 
wherever it is emitted it will be more likely to 
produce public mischief than public good. 

The getleman asks, shall the state give way 
to the bank, or the bank to the state ? and adds 
the bank should not interfere with the state. 
By the state I suppose he means a party in the 
state. I wish the state had not interfered with 



108 MORRIS ON THE BANK 

the bank, and the bank would not interfere with 
the state. * * * * 

The gentleman has told us, they had no banks 
in Rome during the republic. The Romans 
were a very different sort of people from the Phil- 
adelphians. They did in their days what they 
thought right and proper for them to do ; but 
their conduct in this respect can never serve 
for a rule for ours. 

The gentleman frequently gives us little scraps 
from history ; and I give him credit for his 
reading, which I am always ready to hear and 
pay proper attention to, when it bears any anal- 
ogy to, or runs parallel with the subject in de- 
bate. He has brought us an extract from the 
journals of the Irish house of commons, to prove 
that another people had strong objections to the 
establishment of a bank. I wish I were deep- 
er read, — perhaps had there been revolution I 
should have been so, — I have read some history 
— but I will not trust my memory. On this 
occasion, however, I will observe that in 1721, 
the period in which the question of the bank 



OF NORTH AaiERICA. 109 

was agitated in Ireland, the people of that coun- 
try were in a situation very different from that 
of Pennsylvania at present. They were under 
the government of Great Britain which held 
their commerce in trammels. They could hard- 
ly pretend to the enjoyment of liberty. This 
was moreover a time when the public mind was 
agitated by bubbles of government which were 
brought forth and burst in different parts of 
Europe. The people therefore were afraid of 
every new scheme. 

But if the Irish could have established a 
bank, and had the manaixement of it themselves 
they would have had no objection. After their 
late successful struggles for the recovery of their 
freedom, I am sure they either have already, or 
soon will establish a bank amoni; them. But 
Ireland is a country which does not boast of 
its wealth or commerce. It is a very good coun- 
try for importing people, linen, and potatoes 
from — but I should not have looked to Ireland 
to import from thence commercial establish- 
ments or precedents. 

10 



110 MORRIS ON THE BANK 

In reply to some observations on this part of his 
speech, Mr. Morris subsequently said he did not in- 
tend in these remarks to say any thing disrespectful 
of the Irish people, and hoped he had not injured 
the feelings of any one ; that he had himself been 
in Ireland, and experienced the hospitality of the 
inhabitants ; that many of his intimate friends were 
Irish, and that he had not then to learn that large 
quantities of beef, butter and pork, and some manu- 
factures were exported from Ireland ; but still her 
trade was confined, and she was not the most proper 
place to look to for commercial precedents. 

The gentleman has spoken of the low ebb of 
our commerce, and says it is almost entirely 
confined to importation. 

The commerce of America is really, as the 
gentleman says, at a low ebb. It was on a 
' much more respectable footing before the late 
war than it is at present. We then exported 
large quantities of wheat, flour, Indian corn, 
beef, butter, pork, iron, lumber and other arti- 
cles, from this port. The neighboring provinces 
made the like exports. New-England exported 
fish, oil, whale-bone, &c. North Carolina, na- 
val stores; South Carolina and Georgia, rice. 



OF NORTH AMERICA. Ill 

indigo, peltries, &lc.; and every part of the con- 
tinent had staple commodities suited to the con- 
sumption of foreign markets, which enabled us 
to pay for the things we had occasion to import. 
Certain it is that our exports are now much less 
than they were then, which is somewhat sur- 
prising as every article of produce commands a 
good price, and nothing remains on hand to 
perish for want of purchasers. Whether this 
decrease of exports is the consequence of less 
culture of the country, or of an increased home 
consumption, I cannot decide. But this is cer- 
tain, that the returning habits of industry, with 
the daily progress of population, must give an 
amazing increase of produce for exportation ; 
and I should not be surprized were this to hap- 
pen much sooner than even the most sanguine 
expectations point out. If the position be true 
that we are in a miserable situation so long as 
our imports exceed our exports, I hope it will be 
admitted, and soon experienced that the reverse 
of that position will place us in a flourishing 
state. 



112 MORRIS ON THE BANK 

But that tlie bank facilitates those importa- 
tions, I have already denied, and have in some 
degree proved the contrary : and were it neces- 
sary, further proof might be adduced, though it 
seems improper to prove a negative. * * ^ 

In reply to my observations respecting the 
difficulty of selling inward and purchasing out- 
ward cargoes for shipping, he asks, how were 
our ships loaded before the revolution ? I an- 
swer, and the fact is well known, that delays 
frequently, I may say constantly, occurred for 
want of facilities in raising money, and the 
merchant had it not always in his power to pur- 
chase the produce brought to market by the 
farmer. 

The bank has remedied this inconvenience to 
both : destroy the bank, and I have no doubt the 
case will again become familiar to the most re- 
spectable traders. 

The bank is said to be of no use to the farm- 
er. I beg leave to ask whether it is not useful 
to the farmer to meet a ready sale for his pro- 
d uce ? If it be, I insist the bank in its opera- 



OF NORTH AMERTCA. 113 

tions, is useful to the farmer. I have heretofore 
experienced the inconvenience arising from the 
want of a bank. When produce has been in 
plenty at market, and I have been eagerly bent on 
the purchase of it, although possessed of prop- 
erty sufficient, I could not command money for 
the purpose, and the farmer could not sell upon 
credit. Thus both have suffered distress which 
could have been relieved by a bank. The ex- 
ports in those days were very considerable. The 
house of which I was then a member, have ship- 
ped in one year from forty to fifty thousand bar- 
rels of flour, and other articles in proportion. 
Such purchases require large sums of money, 
and these were extremely difficult to raise. 

The quantity of produce for exportation will 
now be increased every year, and the demand 
for money will also increase. If the bank be 
destroyed, the merchants of these days will ex- 
perience the difficulties I have mentioned. The 
farmers and millers, bringing their produce to 
market, must wait for the sale, until money can 

be raised. They will be frequently compelled 

10* 



114 MORRIS ON THE BANK 

to sell at reduced prices, such as a chance moni- 
ed man may please to offer ; or they must place 
their goods in the hands of fiictors, who must 
derive their advantage by way of commission, 
storage and charges, which the farmer must 
pay. Whereas if the bank be suffered to exist, 
in full force, the merchant's occasional necessi- 
ties can be relieved by discounts, and the farm- 
er meet with ready sale for his produce. This 
I conceive to be the greatest use the farmer can 
wish to derive from the bank. 

The first attack upon the bank gave a check 
to the price of produce, which has continued to 
be felt ever since : and if the bank be destroy- 
ed, those farmers who raise more than they 
consume, will be sensible of the consequences. 

To obviate the objection that the bank absorbed the 
money which otherwise might be let for long terms, 
on bond and mortgage, which was a favorite plan 
with the farmers, Mr. Morris gave an analysis of the 
interests in the stock of the bank ; in which he stat- 
ed the amount of stock to be, at that time, 870,400 
dollars, consisting of 2176 shares, of which 285 
shares, belonged to foreigners, most of which were 



OF NORTH AMERICA. 115 

owned in Holland. From that country, notwith- 
standing the best landed security had been oiFered, 
no loans on bond and mortgage had ever been ob- 
tained. Six hundred and six shares were. owned in 
New-England, New- York, Delaware, New-Jersey 
and Virginia, subscribed for during the war, from 
patriotic motives. The funds thus invested, if not 
continued in the bank, would be withdrawn from 
the state. About fifty shares, amounting to 20,000 
dollars only, were obtained in the state, out of the 
city. Of this, he thought it possible that a small part 
might be loaned on mortgage. The remaining 1,235 
shares belonged to citizens of Philadelphia, princi- 
pally commercial men, whose inducement was, to 
support an institution which afforded them accom- 
modation and convenience by means of discounts. 
He then proceeded. 

* # ^? With very few exceptions, we 
may say that not one dollar of this money would 
ever be lent out on bond and mort^ao-e. There 
are very few of this class of stock-holders who do 
not stand in need of the whole of their money in 
the course of business ; and when in need, they 
borrow occasionally, perhaps the whole [amount 
of their stock,] or more. It is upon these prin- 
ciples the merchants generally remain stock-hold- 



1 16 MORRIS ON THE BANK 

ers : — when one does not want his monej it is 
earning his sliare of the dividend from another; 
and by thus clubbing a capital together, as it 
were, the occasional wants of all are supplied. 
But 1 am perfectly satisfied that none of these 
shares can be lent on bond and mortoraQre. Does 
it not therefore appear that this charge is as 
groundless as the others ? 

Before the war, moneyed men were fond of 
lending upon bond and mortgage : it was a fa- 
vorite practice ; was thought perfectly safe ; and 
enabled those who were advanced in years, to 
receive an income, so as to live at ease and 
quiet; and I doubt not this practice might have 
been revived, had not the lenders suffered se- 
verely, — some in the whole, others in part ; and 
even those who have escaped loss arc deterred 
from lending again, by the dread of paper mo- 
ney, and tender laws ; and so long as this dread 
continues, all hopes must be relinquished of 
borrowing upon bond and mortgage. 

While the practice of lending upon bond and 
mortgage existed, there was another practice 



OF NORTH AMERICA. 117 

which existed with it. The lenders were chiefly 
citizens, [inhabitants of the city ;] and for the 
convenience of collecting the interest on the 
day it fell due, they preferred lending to those 
citizens of Philadelphia who wanted to borrow; 
so that the farmers, even in those days, could 
Hot obtain loans until the citizens were satisfied. 
Now, should the days of loaning return, the 
bank will prove useful to the country in that 
respect ; for by the temporary discounts which 
citizens obtain at the bank it is probable their 
wants will be supplied, and thereby their com- 
petition with the farmers prevented. I have 
known many a man formerly obliged to borrow 
money for twelve months, although he wanted 
it but for three, four, or six; but the practice was 
to lend for twelve ; and the capitalists thought 
il too troublesome to lend for a shorter time. A 
certain rich citizen of Philadelphia, inimical to 
the bank, now taken and hugged to the bosoms 
of those who so warmly advocate the interests 
of the farmers, declares publicly, that he is an 
enemy to the institution, because he could pur- 



118 MORRIS ON THE BANK 

chase flour cheaper were it destroyed. From 
this declaration the farmers may form some 
judgment how far the bank is useless or injuri- 
ous to them. 

In effect the utility of the bank is experienced 
by every man in the state at some period or 
other. I have shown clearly it is useful to the 
farmer and miller. The mechanic also, derives 
his share of benefit from this institution. Punc^ 
tuality in paying his workmen is of the greatest 
importance to the master, and absolutely ne- 
cessary to the comfortable subsistence of the 
journeymen. The employer must have it in 
his power to make regular payments to the mas- 
ter mechanic, or he in his turn cannot be punc- 
tual. It has heretofore happened that those whe 
built houses, or gave employment to various 
trades, have not had it in their power to pay- 
punctually, according to their engagements. 
But in all such cases, on future occasions, relief 
may be found at the bank. The employer, giv- 
ing his note to the master, their joint credit, if 
they are entitled to credit, will procure the sum 



OF NORTH AMERICA. 119 

wanted by a discount at the bank. This obser- 
vation must strike every mechanic at the first 
glance; and if he turns his attention to the sub- 
ject, his own thoughts will point out various 
modes in which he may draw resources and 
conveniences from this institution. In short, the 
same reasoning will apply to every description 
of men that have any thing to do with money. 
Is it possible then that we shall pursue meas- 
ures for the destruction of an institution so use- 
ful 1 One would think that the first thing which 
offers itself to our consideration in the nature of 
a bank, would be sufficient to prevent the pur- 
suit of such a measure. It is that a number of 
persons have placed in the care of the president 
and directors of the bank a sum of money for the 
express purpose of lending to those that want to 
borrow; and that this sum, those persons can- 
not draw out again, but it must remain for 
that use. Besides this, there is also a further 
sum constantly in the power of the direct- 
ors which enables them to extend their loans 
beyond the capital or stock, and on which, part 



120 MORRIS ON THE BANK 

of the profits of the bank arise. The integrity, 
punctuality and prudence of the president and 
directors have obtained such credit with the 
citizens of Philadelphia, that numbers of them 
deposit their money in the bank for safety and 
convenience. It is received and paid at their 
pleasure without expense or risk on the part of 
the depositor. And the sums so collected to a 
point, being considerable, the bank is enabled 
always to lend a part of the money so placed, 
as it is not in the nature of things that the de- 
positors should all call for their money at one 
and the same time — consequently a part of the 
sum will answer the demands of the whole : and 
by this means, it must be seen, that sums of 
money are continually brought into circulation 
and use, that would otherwise be mouldering in 
the chests of those who would neither lend, nor 
use them, and that the bank by this credit, is 
enabled to extend its utility amongst those whose 
necessities, disappointments, interest or conve- 
nience incline them to borrow. 

I have been told, out of doors, although it 



OF NORTH AMERICA. 121 

has not been mentioned here — that the opposi- 
tion to the bank is in part levelled at me person- 
ally. If any oppose it in that view, and suppose 
my interest would suffer from the annihilation 
of the bank, they are grossly mistaken. I am 
not stimulated by the consideration of private 
interest to stand forth in defence of the bank ; 
for be assured, Sir, that if this be destroyed 
another shall arise out of its ashes, one that will 
be of great advantage to my interest and the 
interest of those who may join me in establish- 
ing it; nay — should I be disappointed in pro- 
curing such associates as I would choose in the 
undertaking, I will establish a bank, on my own 
capital, credit, and resources; and so far from 
doubting its success, I do not hesitate to pro- 
nounce that even my enemies, (and God knows I 
seem to have enough of them — at least political 
enemies — for I know of no other cause of their 
being so,) will deal with me and trust me, not 
that I expect they may like me better than nov/, 
hut they have confidence in mc^ and for the sake 



122 MORRIS ON THE BANK 

of their own interest and convenience they will 
deal with me. ***** 

A member, in opposition to the renewal of the 
charter, had objected that information could not be 
obtained at the bank, on account of the " secrecy of 
the institution." Mr. Morris, in reply, observed ; 

Herein he is much deceived : this secrecy re- 
lates to the state of accounts depending between 
individuals and the bank: and the necessity of 
this secrecy every one must see. I appeal to 
the feelings of all who hear me, whether they 
would choose the state of their accounts should 
become known to any but the officers of the 
bank, to whom they are confided? 

•^ TV* tt ^f 

As superintendent of finance, I was entitled to 
receive daily a state of the accounts of the bank ; 
but neither the directors, nor myself, ever con- 
sidered this as extending to the accounts of in- 
dividuals ; and I never was made acquainted 
with any such matter. This is the only kind of 
secrecy, I apprehend, that it could be necessary 
for the president and directors to observe ; for 



OP NORTH AMERICA. 123 

as to the state of their own affairs, that is, the 
affairs of the bank generally, I take it they 
would, whenever needful, or proper, explain 
them without hesitation. * # * 

The member from Fayette, seems to charge 
me with claiming the merit of brino-incr about 
the revolution. In this, however, no part of my 
conduct will justify him. It is not my practice 
to claim merits which do not belong to me. It 
is true in defending myself from attacks which 
have been made, I have been obliged sometimes 
to mention services performed, and by so doing 
they are submitted to public investigation, and 
would be corrected if not truly stated. When 
I mentioned supplies of flour sent to Gen. Wash- 
ington's camp, it was introduced to show the 
distresses of the times; however, I did not, as 
this gentleman was pleased to express himself, 
say it was sent at my expense, but that it was 
obtained upon my credit : neither has my vanity 
or folly prompted me to pretend that I established 
the independence of America. It is my glory 
to have had a share in it, and I am not ashamed 



124 MORRIS ON THE BANK 

of the share whicli has fallen to my lot; I hope 
it will ever do me honor. * * * 

The eleventh and thirteenth articles of the 
proposals for establishing the bank, published 
with my name thereto, are brought forward, by 
the member from Fayette to show that my sen- 
timents are changed respecting the control of 
government over this institution. The clause 
subjecting the state of the bank accounts to 
the inspection of the superintendent of finance, 
was then excellent, because I was superintend- 
ent — but now, he remarks, I thank God, it is 
not under the control of government. I am 
still of opinion that the clause was excellent, 
and that it was useful. 

The institution was framed under an expec- 
tation that the public moneys were to be placed 
there from time to time, and that it would de- 
rive advantage from the public funds passing 
through that channel. It was therefore judged 
proper for the bank to submit to such inspec- 
tion, and necessary to create public confidence, 
— first because the public money being deposit- 



LIFE OF ROBERT MORRIS. 125 

ed there, the United States would by their offi- 
cer know it was secure : and secondly, individ- 
uals having transactions with the bank, would 
think themselves safe, and believe in its stability 
while it enjoyed the confidence of government, 
and its proceedings were subject to such a check 
as the inspection of them by a public officer of 
high trust. These are the considerations that 
induced my approbation of those clauses then. 
But what is the case now. The United States 
have no longer a superintendent, and although 
they have a board of the treasury with the same 
powers, they have no funds in the bank ; there- 
fore no necessity exists for any examination into 
the state of that institution on their part ; and 
with respect to individuals, it has fully acquired 
the necessary confidence ; so that in neither 
case is this inspection necessary. 

If indeed the state of Pennsylvania had 
thought of depositing money in the bank, the 
government might talk of control ; and would 
have a right to make terms. 

They might stipulate as a condition that the 



126 MORRIS ON THE BANK. &yC 



treasurer of the State, or some other of their 
officers, should so far have inspection of the 
bank, as to know, before the treasurer, the col- 
lector of taxes, of imposts, of duties, of excise, 
should deposit public moneys there, that such 
deposits would be perfectly secure. * * 
* * This kind of connection between the 
government and the bank, would be very prop- 
er ; but any subjection or dependence of the 
bank on government, would be inconsistent 
with its nature. The attempt then to prove any 
inconsistency in my opinion fails, — my present 
being perfectly consistent with my former opin- 
ions on this subject. 

*^U ^ .'J. .jf, 4f. 4/^ 

W TV •Js' W TP TT 

At the close of the debate, the house refused by 
a vote of forty-one to twenty-eight, to adopt the res- 
olution recommended by the committee, in favor of 
the recharter of the bank. It was, however, rechar- 
tered for the term of fourteen years, by the next le- 
gislature, in 1787, restricting the capital to two mill- 
ions. By successive renewals it has been continued 
to the present time. 

THE END. 



LRBD?9 HZZ 74 







^°-v-. 



c 



0' . 






2 

n 






A 



^ 



<^. 



'viy- 



0' 



y: 



'oK 




\/ ::^^/)^% 



^ ^^ & * -^ " "^^ ^"^ 



^ 



.^ 



o w o 






2 
O 



A 



' '- i. <-' \ 










o w " ^v; 




•^^ 



<<Jy- c ° " " ■♦ <^ 



^oV^ 









V 









.40, 



O, 



^' 







..-^ 



^ ,, O N O ^ ^ 



.-.^ « <s>^^\f^'^- 



V • O ^ "^^ 



:£MM-. 



•9- 













<J> ^ O M O ^ "^■''. 



* « s <0 



o 



o 



/. 



^"■^t. 



°^ 



* %'^- 



c 






iV 



.X^^ 




C^' 









O 



<i> 



---.^ ^"^ '^- *'^' 






S" '^.> °o%7fSW; .V ^. 



-p 






c 







4' 



• 



t 




OCT 73 

^^f^ N. MANCHESTER. 
INDIANA 






i' 





006 127 535 6 



LIBRARY OF CONGRESS 




